social protection assessment based national dialogue...нийгмийн хамгааллын...
TRANSCRIPT
HEALTH EDUCATION WATER SOCIAL TRANSFERSCHILDREN FAMILY PARTICIPATESANITATION
FOODOLD-AGECOUNTRY OWNERSHIP HOUSINGACTIVE-AGE
INFORMING
CO-OPERATING PROTECTION SECURITY
Social protection assessm
ent based national dialogue: Definition and cost of a social protection floor in M
ongolia
Social protec on assessment based na onal dialogue:Defi ni on and cost of a social protec on
fl oor in Mongolia
Social protec on assessment based na onal dialogue: Defi ni on and cost of
a social protec on fl oor in Mongolia
ILO/JapanMulti-bilateralProgramme
Social protec on assessment based na onal dialogue: Defi ni on and cost of
a social protec on fl oor in Mongolia
Copyright © United Na ons, Interna onal Labour Organiza on and the Government of Mongolia 2015
First published 2015
This report may be reproduced and circulated for non-profi t purposes with the appropriate acknowledgement.
Social protec on assessment based na onal dialogue: Defi ni on and cost of a social protec on fl oor in Mongolia /United Na ons; ILO Regional Offi ce for Asia and the Pacifi c; Government of Mongolia. Ulaanbaatar: UN/ILO/Government of Mongolia, 2015
ISBN: 9789221298359; 9789221298366 (web pdf)
United Na ons; ILO Regional Offi ce for Asia and the Pacifi c; Government of Mongolia
social protec on / social security / social security policy / social security fi nancing / rapid assessment / Mongolia
02.03.1
Also available in Mongolian: Нийгмийн хамгааллын үнэлгээнд суурилсан үндэсний хэлэлцүүлэг: Монгол Улсын нийгмийн хамгааллын суурь түвшний тодорхойлолт, зардал (ISBN 9789228298352; 9789228298369 (web pdf)), Ulaanbaatar, 2015.
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Cover photos and photos on pages 2, 29, 40, 61 © ILO/N. Munkhbaatar 2014
All other photos © ILO/B. Byamba-Ochir 2012
Printed in Mongolia
Descrip on of exis ng social security and social protec on schemes for each of the four social protec on fl oor guarantees, iden fi ca on of policy gaps and implementa on issues, recommenda ons, rapid cos ng exercise to es mate the cost of comple ng the social protec on fl oor
Celine Peyron Bista (ILO), Lkhagvademberel Amgalan (ILO), Baigalmaa Sanjjav, and Batsukh Tumurtulga produced the report on behalf of the United Na ons and Government of Mongolia joint Social Protec on Working Group.
In addi on to the four authors, Cheng Ong Boon provided support to the es ma on of the cost of the social protec on fl oor in Mongolia.
Social protec on assessment based na onal dialogue: Defi ni on and cost of
a social protec on fl oor in Mongolia
vi
ForewordDriven mainly by the mining sector, the Mongolian economy has grown rapidly in recent years, at an average of more than 9 per cent per year for the last decade. The benefi ts of economic growth have been uneven, and while poverty has declined somewhat, almost 30 per cent of the popula on s ll lives below the na onal poverty line. Enhancing social protec on is therefore vital to ensure that rapid economic growth is inclusive and improves the lives of all people, especially the poor and the vulnerable.
The Government of Mongolia, par cularly the Ministry of Popula on Development and Social Protec on, and the Ministry of Labour, has recognized the importance of implemen ng a na onal social protec on fl oor as a way of reducing poverty and ensuring inclusive growth in the country.
In September 2013 the Ministry of Popula on Development and Social Protec on launched the assessment based na onal dialogue (ABND) on social protec on and employment support in Mongolia.
The ABND was completed in September 2014, with the support of the United Na ons (UN) Country Team. It aims to set common priori es that can defi ne and help es mate the cost of a social protec on fl oor in Mongolia. It also creates a basis for the holis c development of social protec on, and will provide a way of measuring progress towards extending social protec on to all. The ABND off ers an analy cal and monitoring framework to measure progress made towards implemen ng a social protec on strategy and reducing poverty.
The UN recognizes that improving social protec on is an eff ec ve way for a country to reduce na onal poverty and promote social and economic development and put economic growth prospects on a more sustainable foo ng. Recently, and par cularly since the 2008–09 global fi nancial crisis, social protec on has a racted renewed global a en on as a way of mi ga ng the nega ve impact of economic shocks and providing a catalyst for economic and social development.
In April 2009 the UN Chief Execu ve Board adopted the Social Protec on Floor Ini a ve as one of its responses to the global fi nancial crisis. This decision refl ected a global commitment to extending a minimum level of social protec on and access to social services to all. Since then this idea has received global endorsement, notably at G20 mee ngs in France in 2011 and in Mexico in 2012, and by the Interna onal Labour Conference which adopted the Social Protec on Floors Recommenda on, 2012 (No. 202). Establishing a social protec on fl oor will also be one target of the Sustainable Development Goals, rela ng to the post 2015 development agenda.
A social protec on fl oor aims to provide a universal minimum level of social benefi ts and services, guaranteeing – at least – access to essen al health-care services; educa on, care and nutri on for children; and income security for those of working age, older people and people with disabili es. The social protec on fl oor framework also provides an opportunity for all UN agencies, development partners and interna onal fi nancial ins tu ons to work together to extend social protec on and improve the delivery of social benefi ts and services.
Many countries in the Asia Pacifi c region, including Afghanistan, Cambodia, India, Indonesia, Myanmar, Nepal, Pakistan, Philippines, Solomon Islands, Thailand, Vanuatu and Viet Nam, have adopted the social protec on fl oor concept when designing their na onal social protec on policies and strategies, and used the ABND tool to set priori es for their implementa on.
vii
We hope that the results of the ABND exercise, in par cular the policy recommenda ons presented in this report, will provide useful guidance towards the development of a plan to complete the social protec on fl oor in Mongolia, and that some of these recommenda ons will be translated into ac on. We are confi dent that the par cipatory approach adopted throughout the exercise has contributed to raising awareness among line ministries, representa ves of workers and employers, civil society organiza ons, and UN agencies about the social protec on fl oor concept, its relevance for Mongolia, and the importance of a coordinated approach to social protec on development.
Tim De Meyer
Director of the ILO Country Offi ce for China and Mongolia
Sezin Sinanoglu
UN Resident Coordinator UNDP Resident Representa ve for Mongolia
viii
Table of contents
Foreword ................................................................................................................................................. vi
Table of contents ................................................................................................................................... viii
List of fi gures ........................................................................................................................................... ix
List of tables ............................................................................................................................................. x
Acknowledgement by the Ministry of Popula on Development and Social Protec on ........................ xiii
Acknowledgement by the Ministry of Labour ....................................................................................... xiv
Acknowledgement by the authors ......................................................................................................... xv
Execu ve summary ............................................................................................................................... xvi
Abbrevia ons .......................................................................................................................................xxiii
1. Introduc on ...........................................................................................................................................1
2. Context and process ..............................................................................................................................3
3. Assessment based na onal dialogue: Objec ves, methodology and process .....................................5
3.1. Objec ves ..........................................................................................................................................5
3.2. Generic methodology and process ....................................................................................................6
3.3. Overview of the na onal social protec on context ........................................................................10
4. Step 1. Development of the assessment matrix and the results of the ABND on social protec on and employment promo on in Mongolia .............................................................................15
4.1. Health care ......................................................................................................................................16
4.2. Children ...........................................................................................................................................25
4.3. Working age popula on ..................................................................................................................35
4.4. Older persons ..................................................................................................................................53
5. Step 2: Cos ng methodology, descrip on of the policy op ons (‘scenarios’) to complete the social protec on fl oor and cost projec ons .....................................................................................61
5.1. Health care ......................................................................................................................................66
5.2. Children ...........................................................................................................................................70
5.3. Working age .....................................................................................................................................75
5.4. Older persons ..................................................................................................................................84
6. A Na onally Defi ned Social Protec on Floor for Mongolia ................................................................87
6.1. Consolidated package to close gaps in the social protec on fl oor in Mongolia ..............................87
6.2. Cost comparison of diff erent op ons for social protec on fl oor in Mongolia ................................89
6.3. Defi ni on and cost of a social protec on fl oor for Mongolia ..........................................................91
ix
6.4. Fiscal space for fi nancing the na onally defi ned social protec on fl oor of Mongolia ....................93
6.5. The need for coordina on and effi cient delivery of services ..........................................................97
Annexes ..................................................................................................................................................98
Bibliography ..........................................................................................................................................121
List of fi gures
Figure 1. Results of the addi onal cost es mate for comple ng a social protec on fl oor
in Mongolia, per guarantee ................................................................................................................... xix
Figure 2. Projected cost of a social protec on fl oor compared to the projected cost of social
expenditures as percentage of GDP (2014-20) ....................................................................................... xx
Figure 3. RAP model structure ..................................................................................................................6
Figure 4. The ABND process in Mongolia ...............................................................................................10
Figure 5. Overall structure of the social protec on system in Mongolia ................................................11
Figure 6. The social insurance schemes of Mongolia .............................................................................12
Figure 7. Structure of the assessment matrix .........................................................................................15
Figure 8. Mul ple dimensions of health coverage in Mongolia compared to other countries
(2011) ......................................................................................................................................................23
Figure 9. Exis ng social protec on programmes for children in Mongolia ............................................26
Figure 10. Exis ng social protec on and employment promo on programmes for people of working age in Mongolia ........................................................................................................................35
Figure 11. Overall popula on and revised popula on over age 15 in 2012,
(a) male and (b) female ...........................................................................................................................62
Figure 12. Addi onal cost to complete the social protec on fl oor for the
combined low and high scenarios, per programme, as a percentage of GDP (2014–20)........................89
Figure 13. Results of the addi onal cost es mates for the combined low and high scenarios per guarantee .........................................................................................................................................90
Figure 14. Projec ons of social expenditures as a percentage of GDP, comparing the cost of the
status quo, low and high scenarios for a social protec on fl oor ............................................................90
Figure 15. Projec ons of social expenditures as a percentage of GDP, comparing the status quo and comple on of a social protec on fl oor (2014-20) ...........................................................................92
Figure 16. Consolidated budget, share of social expenditures and growth rate of revenues and expenditures compared to previous year (billion MNT) ..................................................................93
Figure 17. Total social protec on expenditures in Mongolia by source (billion MNT) ...........................94
Figure 18. Projec ons of social expenditures as percentages of GDP and State revenues ....................95
Figure 19. Social protec on expenditures and cost of a social protec on fl oor as percentages of revenues and grants, actual and projected ...................................................................95
Figure 20. Fiscal defi cit as a percentage of GDP at current prices, comparison between status quo in terms of social expenditures and the establishment of a social protec on fl oor .......................96
Figure 21. Cost of a social protec on fl oor compared to State revenues and expenditures (2005-20) 96
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List of tables
Table 1. Defi ni on of social protec on fl oor for Mongolia ...................................................................xviii
Table 2. Scope of the ABND ......................................................................................................................7
Table 3. Number of insured under the social insurance scheme (in thousands) .....................................12
Table 4. Insured under the social insurance scheme as a percentage of the economically ac ve popula on .....................................................................................................................................13
Table 5. Objec ves and strategies for developing health insurance in Mongolia (2013–22) ..................18
Table 6. Number of insured under the SHI scheme (in thousands) .........................................................21
Table 7. Recommenda ons for expanding access to health care adopted by the ABND ........................24
Table 8. Programmes aimed at suppor ng educa on of vulnerable children .........................................29
Table 9. Summary of social protec on programmes for children ...........................................................32
Table 10. Recommenda ons for improving the quality of social protec on for all children
adopted by the ABND ..............................................................................................................................34
Table 11. Comparison between the provisions of laws adopted in 1994 and 1999 for disability and survivor pension ...............................................................................................................................40
Table 12. Other social welfare cash supports (2013) ...............................................................................41
Table 13. Summary of social protec on programmes for the working age group ..................................48
Table 14. Recommenda ons adopted by the ABND for ensuring income security of the working age group.................................................................................................................................................52
Table 15. Two parallel pension schemes of Mongolia .............................................................................56
Table 16. Other social welfare cash supports ..........................................................................................58
Table 17. Summary of social protec on programmes for older persons ................................................59
Table 18. Recommenda ons adopted by the ABND for securing social
protec on to older persons .....................................................................................................................60
Table 19. Life expectancy in Mongolia 2007-13 ......................................................................................62
Table 20. Sources of household income per month, na onal and sub-na onal averages
(Q4 2012, in MNT) ...................................................................................................................................64
Table 21. Health care scenarios ...............................................................................................................66
Table 22. Results of cos ng SHI scenarios ...............................................................................................68
Table 23. Children scenarios ....................................................................................................................70
Table 24. Results of cos ng child income security and nutri on ............................................................73
Table 25.Working age scenarios related to social insurance ...................................................................75
Table 26. Working age scenarios related to ac ve labour market policies ..............................................76
Table 27. Results of cos ng: Increasing social insurance coverage and promo ng
employment of the working age group ...................................................................................................80
Table 28. Older persons scenarios ...........................................................................................................84
Table 29. Results of cos ng: Increasing old age pension coverage among herders
and self-employed workers .....................................................................................................................86
xi
Table 30. Proposed combined low and high es mates ...........................................................................87
Table 31. Regional average (weighted by total popula on) of public social protec on
expenditure by guarantee, latest available year (percentage of GDP) ....................................................91
Table 32. Defi ni on of a social protec on fl oor for Mongolia .................................................................91
xii
xiii
Acknowledgement by the Ministry of Popula on Development and Social Protec on
The Project on social protec on and employment promo on in Mongolia is an extension of technical assistance the Interna onal Labour Organiza on (ILO) provided to ASEAN Member States with fi nancial support from the Government of Japan.
Through the assessment based na onal dialogue, organized with the support of the United Na ons and in par cular the ILO project on social protec on and employment promo on in Mongolia, the current social security systems of Mongolia were assessed to determine whether they ensured the four basic guarantees of a social protec on fl oor in accordance with the ILO Social Protec on Floors Recommenda on, 2012 (No. 202).
At a cri cal moment in Mongolia’s history as the popula on of the country reached 3 million, it is a great achievement to successfully conduct the assessment of a na onally defi ned social protec on fl oor and reach a consensus among all par es in order to ensure that 1) all residents have access to a na onally defi ned set of aff ordable essen al health care services; 2) all children enjoy income security through transfers in kind or in cash ensuring access to nutri on, educa on and care; 3) all those in ac ve age groups who cannot earn a suffi cient income enjoy a minimum income security through social transfers in cash or in kind or employment guaranteed schemes ; and 4) all residents in old age have income security at least at the level of the na onally defi ned poverty line through pensions for old age or transfers in kind.
The results of this project include projec ons of the cost of ensuring medium and long term social protec on to the popula on and reducing poverty and unemployment. It is expected that the projec ons will make a signifi cant contribu on to the development of evidence-based social protec on policies in the future.
I would like to thank the members of the United Na ons and Government joint Social Protec on Working Group, and par cularly the ILO project steering commi ee which consisted of representa ves of the Ministry of Popula on Development and Social Protec on, the Ministry of Labour, the Mongolian Employers’ Federa on, the Confedera on of Mongolian Trade Unions and other stakeholders for their coopera on in this eff ort to summarize the current situa on of social security and defi ne the social protec on fl oor in Mongolia.
Sincerely,
H.E. Sodnomzundui Erdene Member of Parliament, Minister for Popula on Development and Social Protec on
xiv
Acknowledgement by the Ministry of Labour
Since September 2013 the Government of Mongolia has been organizing the assessment based na onal dialogue on social protec on and employment promo on with the assistance of the United Na ons. I would like to thank the United Na ons and Government joint Social Protec on Working Group for their coopera on in the na onal consulta ons and for providing valuable recommenda ons to expand social protec on and social protec on fl oor in Mongolia.
The Government, notably the Ministry of Labour, is working to involve the working age popula on and vulnerable ci zens in the employment promo on programmes and provide employment services for them. The Ministry of Labour is also working to provide the elderly and the disabled with social pensions and benefi ts, thus increasing the level of income, ensuring social protec on fl oor and improving the level of guaranteed income.
Over the past ten years successive policy reforms to increase decent employment and promote employment opportuni es for target popula ons have been implemented in the labour sector and clear posi ve outcomes are emerging. Some notable examples include programmes and measures to support the self-employed to start coopera ves; promote employment opportuni es for herders, people with disabili es and young people; and provide income support for senior consultants.
Furthermore, a greater degree of a en on is needed for measures to implement the social protec on fl oor recommenda ons, which were defi ned through the assessment based na onal dialogue in Mongolia. Of par cular importance are employment promo on measures for young herders, the provision of voca onal educa on for young people and workplaces that off er permanent income sources, and measures to increase social insurance coverage.
I do believe that enthusias c coopera on will bring be er results as we establish eff ec ve and systema c linkages between social protec on measures and ac ve labour market policies and programmes.
Respec ully,
H.E. Sodnom Chinzorig
Minister for Labour
xv
Acknowledgement by the authors
The authors used the ILO Assessment Based Na onal Dialogue (ABND) Good Prac ces Guide (2013) as a reference for the ABND exercise in Mongolia.
The authors gratefully acknowledge support received from all par cipants during the exercise, in par cular the Ministry of Popula on Development and Social Protec on (MPDSP), Ministry of Labour (MOL), and Social Insurance General Offi ce (SIGO), Ministry of Health and Sports (MOHS), Ministry of Educa on, Culture and Science (MOECS), Ministry of Finance (MOF), Ministry of Food and Agriculture (MOFA), Labour Research Ins tute (LRI), the Na onal Sta s cal Offi ce (NSO), Mongolian Employers’ Federa on (MONEF), Confedera on of Mongolian Trade Unions (CMTU), civil society organiza ons and representa ves of and colleagues from United Na ons (UN) agencies involved in the social protec on fl oor ini a ve.
The authors would like to thank the MPDSP and par cularly its Department of Social Protec on Policy Implementa on and Coordina on and Employment Policy Implementa on and Coordina on Department of the MOL for their leadership in conduc ng the ABND and providing valuable comments on this report.
The authors also wish to express their apprecia on to Ms B. Otgonjargal, State Secretary of MPDSP, Ms Sezin Sinanoglu, UN Resident Coordinator and United Na ons Development Programme (UNDP) Resident Representa ve of Mongolia, and Mr Tim de Meyer, ILO Country Director, for providing constant support throughout the process.
Moreover, the authors would like to thank the following individuals for their technical inputs, policy orienta ons, supports and feedbacks:
• Ms L. Munkhzul, Director of Social Protec on Policy Implementa on and Coordina on Department, MPDSP;
• Mr G. Adiya, Secretary General of CMTU;
• Mr Kh. Ganbaatar, CEO and Vice-President of MONEF;
• Mr D. Narmandakh, Advisor to the President of MONEF;
• Ms Ch. Erdenechimeg, Senior Offi cer of Employment Policy and Coordina on Department, MOL; and
• Mr Ts. Urtnasan, Director-General of SIGO.
The authors would like to thank all the members of the UN/G Social Protec on Working Group in Mongolia for their ac ve par cipa on in, co-facilita on of and technical inputs into this exercise:
• Mr Saurabh Sinha, UNDP;
• Dr Soe Nyunt-U and Ms Tsogzolmaa Buyandorj, World Health Organiza on (WHO);
• Ms Enkhnasan Nasan-Ulzii and Ms Victoria Colamarco, United Na ons Children’s Fund (UNICEF); and
• Ms Bolormaa Purevsuren, ILO.
Finally the authors are exceedingly thankful to the Ministry of Health, Labour and Welfare of Japan for fi nancing the ABND through the ILO/Japan Mul -bilateral Programme and in par cular the ILO Technical coopera on project “Extending social security and promo ng employment in Mongolia, learning from ASEAN experiences” (2014–15).
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Execu ve summaryHas Mongolia achieved a social protec on fl oor?
Extending social security and establishing a minimum social protec on fl oor has become a priority in Mongolia.
The social protec on fl oor is a basic set of rights and transfers that enables and empowers all members of a society to access a minimum of goods and services at all mes. It promotes income security through a basic set of guarantees: (i) all residents have access to a na onally defi ned set of aff ordable essen al health-care services; (ii) all children enjoy income security through transfers in kind or in cash ensuring access to nutri on, educa on and care; (iii) all those in ac ve age groups who cannot (or should not, in case of pregnancy) earn a suffi cient income enjoy a minimum income security through social transfers in cash or in kind, or employment guaranteed schemes ; and (iv) all residents in old age have income security at least at a na onally defi ned minimum level through old-age pensions or transfers in kind.
The ini a ve to establish a social protec on fl oor invites all United Na ons (UN) agencies together with the Interna onal Financial Ins tu ons and non-government organiza ons (NGOs) to jointly support government, social partners and other stakeholders in their eff orts to extend social protec on in a coordinated manner. The assessment based na onal dialogue (ABND) on social protec on and employment promo on off ers a framework to engage all stakeholders on social protec on, iden fy policy gaps and implementa on issues, and reach a consensus on recommenda ons for extending social protec on provisions in order to guarantee the social protec on fl oor as a minimum to all residents.
The cost of the proposed provisions to complete a social protec on fl oor was es mated and projected over a fi ve-year period using the ILO Rapid Assessment Protocol (RAP). This cos ng exercise can serve as a basis for discussions on fi scal space and government budget realloca ons, and in turn help priori ze diff erent social protec on policy op ons.
From July 2013 to December 2014, the Government, notably the Ministry of Popula on Development and Social Protec on (MPDSP) and UN Country Team for Mongolia facilitated the ABND on social protec on and employment promo on.
The na onal dialogue par cipants concluded that Mongolia is not yet equipped with a complete social protec on fl oor, i.e. a set of policies and measures that guarantee income security and access to essen al social services by everyone in the country. In order to achieve a na onally defi ned social protec on fl oor, par cipants in the na onal dialogue emphasized the importance of maintaining the principle of universality already applied to certain guarantees (access to health, maternity benefi ts and children protec on among others) and pursue eff orts to extend universal coverage of other benefi ts (old-age pension for instance), arguing against some considera ons for limi ng benefi ts to only certain groups as an approach to contain social protec on expenditures. The par cipants concluded that introducing means-tested eligibility criteria on certain social protec on benefi ts would be detrimental to the level of protec on off ered to people and would jeopardize recent progress in reducing poverty.
The ABND par cipants reached a consensus on the following key recommenda ons to shape the social protec on fl oor of Mongolia.
Guarantee 1 on health: Social health insurance coverage is mandatory and nearly universal; however eff ec ve access to quality health care remains a challenge for many in rural areas. For instance, a recent drop by 6 per cent in social health insurance coverage (compared to 2011 when the Government
xvii
subsidized all contribu ons) may indicate customer dissa sfac on with services lowering the incen ve to contribute. High out-of-pocket (OOP) expenses and ineffi cient services provided by public hospitals discourage voluntary par cipa on in social health insurance and prevent par cipants from accessing adequate health care. The main recommenda on is to improve quality, accessibility and availability of health services.
Guarantee 2 for children: General educa on (up to upper secondary or 12 years of educa on) and health care are provided free of charge to all children. Eff ec ve access to educa on is guaranteed by suffi cient and free-of-charge boarding schools. The Child Money Programme (CMP), universal since 2012, ensures that all children from age 0 –18 years receive a minimum income guarantee. The main recommenda ons of the child guarantee are to maintain subsidies on social health insurance contribu ons for all children and universality of the child allowance, rather than introducing means-tested eligibility criteria that would not bring signifi cant saving to jus fy excluding the large majority of children, including those poor due to exclusion errors a cost comparison is available in the second part of the report). Further recommenda ons include safeguarding the universality of the CMP in legisla on and indexing the allowances to the cost of living; increasing the quality of nutri on in preschools; and improving access to quality social services by promo ng social workers services especially among children with special needs.
Guarantee 3 for people of working age: Par cipa on in the voluntary social insurance system remains low and integra on between income support programmes (e.g. social welfare programmes and unemployment benefi ts) and employment promo on measures is weak. To complete the social protec on fl oor for the working age popula on, the main recommenda ons are: introducing incen ve mechanisms (e.g. subsidies on contribu ons) to increase social insurance coverage among herders and self-employed workers; increasing the replacement rate of maternity benefi ts for women covered under the voluntary social insurance scheme; and establishing eff ec ve and systema c linkages between social insurance and ac ve labour market programmes (e.g. skills training).
Guarantee 4 for older persons: While the par cipa on of private and public employees to the old-age social insurance pension is high, only 23.4 per cent of herders, self-employed and informal economy workers contribute to the voluntary social insurance scheme, despite repeated eff orts to increase coverage. Therefore, the ABND recommends introducing a subsidy on the contribu on (50 per cent was proposed) of herders, self-employed and informal economy workers to contribute and conver ng the scheme into a mandatory one that would require improved enforcement mechanisms. The development of a more holis c approach to long-term care should also be considered.
Defi ni on of a social protec on fl oor for Mongolia
The UN/G Social Protec on Working Group es mated the cost of diff erent scenarios for the social protec on fl oor in Mongolia. The exercise only considered the cost of the cash benefi ts and certain social services such as the cost of subsidies on social insurance, tax-funded social protec on programmes (social welfare benefi ts and services, and CMP for instance), indexa on of exis ng benefi ts, among others. Those benefi ts cons tute the social protec on expenditures of the State budget of Mongolia. In addi on, the cost es mate included the cost of new ac ve labour market policies for target groups, namely young herders, benefi ciaries of unemployment insurance and those receiving a disability pension for the employment injury insurance.
The diff erent scenarios nourished discussions on what would be a recommendable and aff ordable defi ni on of the social protec on fl oor for Mongolia, during a na onal dialogue in September 2014.
xviii
Table 1. Defi ni on of a social protec on fl oor for Mongolia
Guarantee Component of the social protec on fl oor Already in place, to be improved
New programme
Health Universal health insurance coverage, with a full subsidy of the contribu on for vulnerable group and herders
Quality, available and aff ordable health care for all throughout the country, with eff orts to improve supply and services in rural areas
Children Universal and free general educa on, including free boarding schools
Universal CMP, safeguarded by a law and automa cally indexed to the cost of living
Improved early-child nutri on through a higher meal allowance indexed to the cost of living for all children a ending kindergarten (2–5 years old)
Improved environment to ensure the development and fundamental rights of children of herder families
Working age Universal social insurance coverage for sickness, maternity and working injury, with subsidized contribu on for herders, self-employed and informal economy workers (50 per cent subsidized by the State budget)
Replacement rate of maternity benefi ts at 100 per cent for all workers, including herders, self-employed and informal economy workers.
Reinforced Employment Promo on Programmes (EPPs) and introduc on of a specifi c programme for young herders
Return to work and retraining programmes for vic ms of working accident and occupa onal disease, and unemployment insurance.
Guarantee Component of the social protec on fl oor Already in place, to be improved
New programme
Older persons
Three pillar pension system composed of:
- Universal basic pension indexed to the cost of living
-Mandatory social insurance old-age pension coverage, with subsidized contribu on for herders, self-employed and informal economy workers (50 per cent subsidized by the State budget)-Supplementary pension plans.
Create an integrated benefi ts and services package, including a long term care system for older persons, based on exis ng social welfare programmes to provide cash or in-kind assistance to poor older persons
Source: UN/G Social Protec on Working Group, 2014.
xix
Cost of a social protec on fl oor in Mongolia
It would cost an addi onal 0.94 per cent of GPD to achieve the agreed social protec on fl oor in Mongolia in 2015 rising annually to 1.68 per cent by 2020, on top of the already allocated social protec on expenditures (fi gure 1). Because universal social health insurance has almost been achieved already, addi onal investment would mainly reinforce social protec on and nutri on of children, enhance income security and employability of the working age group and ensure old-age protec on. By 2020, the addi onal cost to complete a social protec on fl oor will be spread as follows: 0.60 per cent for achieving the children guarantee, 0.60 per cent for the working age guarantee, and 0.48 per cent for the older persons guarantee.
The con nued increase in the cost of a social protec on fl oor in Mongolia is mainly due to the assump on that in the next fi ve years the coverage under social insurance would become universal, 100 per cent of all labour force, with a large share of the popula on receiving subsidies on their contribu ons. The cost tends to remain constant once the full coverage has been reached. Increase in the social protec on fl oor cost is mainly due to assump ons on infl a on that have been including in salary projec ons.
The cost of a social protec on fl oor in Mongolia would be around 4.7 per cent of GDP in 2020, which s ll falls below the global average public social protec on expenditure rate of 6.0 per cent (fi gure 2).1
1 ILO: World Social Security Report 2014-2015 (Geneva, 2014) Table B.13.
Figure 1. Results of the addi onal cost es mate for comple ng a social protec on fl oor in Mongolia, per guarantee
0.67%
0.94%
1.05%
1.22%
1.48% 1.58%
1.68%
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
1.60%
1.80%
2014 2015 2016 2017 2018 2019 2020
Health Children Working Age Old-Age Total for "Agreed Scenario" (in % GDP)
Source: ILO RAP calcula ons, 2015.
xx
Figure 2. Projected cost of a social protec on fl oor compared to the projected cost of social expenditures as percentage of GDP (2014-20)
Source: ILO RAP calcula ons, 2015.
In comparison, between 2007 and 2011, social protec on expenditures in Mongolia oscillated between 6.6 and 9.5 per cent of GDP, when the government introduced a number of cash transfers to all ci zens of Mongolia. The addi onal cost to complete the social protec on fl oor by 2020 would represent 1.7 per cent of GDP above the status quo of social expenditures. In other words, a social protec on fl oor would cost 44,650 tugrik (MNT) per month per capita in 2020, or US$22.50,2 which would represent an addi onal expenditure of $8 per month per capita to achieve a social protec on fl oor in Mongolia by 2020.
This cost includes all social protec on expenditures already commi ed, the indexa on of social welfare benefi ts to the cost of living, subsidies on social insurance contribu ons and some addi onal programmes that would complete the social protec on fl oor in Mongolia.
The addi onal social protec on spending could be fi nanced either by using revenues of the Human Development Fund or by increasing the fi scal space. In parallel, the increase in social insurance contribu ons (covering all herders, self-employed and informal economy workers) should reduce the recurrent defi cit of the social insurance fund, now fi nanced by the State’s budget.
Conclusions of the ABND in Mongolia
The addi onal cost in terms of social expenditures to ensure that everyone in Mongolia has access to income security and basic social services would be only 1.68 per cent of GDP by 2020, bringing social expenditures to 4.72 per cent of GDP. The social protec on fl oor would guarantee universal health insurance with subsidies for all vulnerable groups and herders to ensure eff ec ve access to health care; improve nutri on at preschool; maintain and index the current universal child allowance, in
4.27%
3.81% 3.53% 3.37%
3.27% 3.10% 3.07% 3.04%
4.48% 4.47% 4.42% 4.49% 4.57% 4.65%
4.72%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
2013 2014 2015 2016 2017 2018 2019 2020
Projections of social expenditures as percentage of GDP
social expenditures as percentage of GDP at current prices (status quo) Cost of the agreed SPF
2 Exchange rate of 16 Mar. 2015: US$1 = MNT1985.6
xxi
addi on to already exis ng free general educa on (un l upper secondary school); introduce universal social insurance coverage, including old-age pension, with subsidized contribu on for all herders, self-employed and informal economy workers; and fi nally establish targeted and eff ec ve employment promo on programmes, par cularly for young herders. Nevertheless, an eff ec ve social protec on fl oor for all will also require strong commitment by the government to improve coordina on, quality and delivery of social protec on benefi ts and social services. Those recommenda ons are part of the defi ni on of a social protec on fl oor for Mongolia although es ma ng the cost of improving social services infrastructures would require more in-depth feasibility and actuarial studies.
Methodological note
The main func on of the assessment based na onal dialogue is to discuss social protec on with all key stakeholders in the country – the Mongolian Government, social partners, civil society organiza ons, academia, the United Na ons (UN) Country Team and other development partners. The primary objec ve is to iden fy priority areas for government interven on in the fi eld of social protec on and to support informed decision-making towards the development of the na onal social protec on fl oor.
The assessment, which is the fi rst step of the exercise, includes an inventory of exis ng schemes and iden fi es some design gaps and implementa on issues for each scheme. The analysis, however, is cursory and cannot replace a comprehensive study of the management and the governance of these schemes.
The assessment generates quan ta ve and qualita ve recommenda ons for fi lling in the gaps. For the fi rst type (“Addi onal provisions to complete the social protec on fl oor in Mongolia and guarantee income security across the life cycle”) the joint United Na ons and Government Social Protec on Working Group was able to calculate and project the cost of the proposed addi onal provisions. For the second and the third types (“Structural reforms of the social security system” and “Improved opera ons of exis ng schemes and quality of services”), addi onal in-depth feasibility studies are needed to provide solid recommenda ons to the Government. These studies will be part of subsequent policy and technical support ac vi es by the ILO and other UN agencies.
The cos ng part, which is the second step of the exercise, uses the ILO Rapid Assessment Protocol (RAP) which follows a logical analy cal sequence and allows for: 1) fl exibility in the design of benefi ts; 2) adaptable projec ons depending on the data available; and 3) es mates of future costs of cash transfer elements.
However, the RAP only considers the cost of the cash benefi ts and certain social services such as the cost of subsidies on social insurance, tax-funded social protec on programmes (social welfare benefi ts and services, and CMP for instance), indexa on of exis ng benefi ts, among others. Those benefi ts cons tute the social protec on expenditures of the State’s budget. In addi on, the RAP used to es mate the social protec on fl oor in Mongolia includes cost of new ac ve labour market policies for target groups, namely young herders, benefi ciaries of unemployment insurance and those receiving a disability pension for the employment injury insurance.
Nevertheless, some of the cash en tlements of the social protec on fl oor in Mongolia can be implemented only if there are adequate social services infrastructure and staff . For example, guaranteeing eff ec ve access to essen al health care would require both universal social health insurance coverage, as well as suffi cient and quality health care facili es and personnel throughout the country. Such infrastructure is, however, by interna onal standards, not part of current social protec on expenditures on cash
xxii
benefi ts and certain social services, and has not been included in the cost calcula ons related to the social protec on fl oor in Mongolia.
The results of the RAP cos ng exercise do not replace in-depth feasibility and actuarial studies that will be required to project more accurately and over a longer period of me the cost of cash benefi ts and social services, as well as the infrastructure and staff needed to implement a social protec on fl oor in Mongolia.
xxiii
Abbrevia ons
ABND assessment based na onal dialogueALMPCMP
Ac ve Labour Market PoliciesChild Money Programme
CMTU Confedera on of Mongolian Trade Unions CPI Consumer Price IndexDB defi ned benefi tEPP employment promo on programmesGDP gross domes c productHDF Human Development FundHIO Health Insurance Organiza onILO Interna onal Labour Organiza onIMF Interna onal Monetary FundMED Ministry of Economic DevelopmentMNT Mongolian tugrikMOECS Ministry of Educa on, Culture and ScienceMOF Ministry of FinanceMOL Ministry of LabourMONEF Mongolian Employers’ Federa onMPDSP Ministry of Popula on Development and Social Protec onMSL minimum subsistence levelMTFF Medium Term Fiscal Framework NAC Na onal Authority for ChildrenNDC no onally defi ned contribu onsNGO non-governmental organiza onNSO Na onal Sta s cal Offi ceOOP out-of-pocket (payments for health care)RAP Rapid Assessment ProtocolPAYG pay-as-you-goPWD people with disabili esSHI Social Health InsuranceSIGO Social Insurance General Offi ceSPF Social Protec on FloorSWGO Social Welfare General Offi ceWHO World Health Organiza onUN United Na onsUNDP United Na ons Development ProgrammeUNICEF United Na ons Children’s FundWHO World Health Organiza on
xxiv
1
1. Introduc onMongolia is a land locked country in Central Asia bordering China in the south, and Russia in the north. In 2013, it has a popula on of nearly 2.9 million and is divided into 21 aimags (provinces) and the capital city, Ulaanbaatar. Over 60 per cent of the popula on resides in urban areas. The capital city houses over one million residents, leaving the rest of the country with a popula on density of fewer than two inhabitants per squared kilometre.
Aimag popula ons range between 14,500 and 118,000. Each aimag is subdivided into soums, including the aimag centre, and soums are subdivided into baghs. There are 330 soums in Mongolia and 1,592 baghs. Bagh residents mainly lead a nomadic lifestyle migra ng seasonally with their herds in extremely severe weather. Ulaanbaatar is divided into nine districts which are further subdivided into 152 khoroos.3
The country con nues to experience cycles of socio-economic and poli cal transi on. The system of government changed from socialism to mul party democra c rule following a revolu on in 1990 and Mongolia began a transi on from State ownership to a free market economy. While herding and agriculture remain the backbone of the rural economy with about 30 per cent of the popula on herding livestock, the mining industry now cons tutes over one fi h of the gross domes c product (GDP). The sale of cashmere and wool provides a link between rural economies and manufacturing and export industries.
In recent years Mongolia has witnessed signifi cant economic progress. GDP growth averaged nearly 9.0 per cent annually in 2004–08 largely backed by high copper price and new gold produc on. Recovering quickly from the global fi nancial crisis in 2008–09, the economy recorded double digit growth in the last
3 Report of the Capital city Sta s cs Department, 2013.
2
three years.4 This remarkable growth record has contributed to poverty allevia on, reducing the poor (living below the poverty line) from 38.7 per cent of the popula on in 2010 to 27.4 per cent in 2012.5
The economy is s ll concentrated in only few sectors. Mineral commodi es account for about 80 per cent of na onal exports and mining provides around 40 per cent of total government revenue. High dependence on mining revenues exposes the country to fl uctua ons in the external environment and the benefi ts of economic growth have not been equitably distributed across the popula on; the urban centre of Ulaanbaatar benefi ng the most from the recent double digit GDP growth.
Adequate social protec on is important for improving produc vity and fostering the transi on to a market economy. Before the transi on, social services such as medical care, pensions and disability insurance and maternity benefi ts were fully State-funded and provided to everyone. During the transi on period the vulnerable groups of the society such as the elderly, people with disabili es, orphans and individuals with low educa on and skills were the most aff ected by the adverse eff ects of transi onal reforms. In the process of priva za on many workers, including herders, found employment opportuni es only in the informal economy.
Since 1995, a new social security system was ini ated in Mongolia. The current social protec on system consists of three key elements: social welfare services and assistance, employment promo on programmes and social insurance. Social protec on expenditures6 in Mongolia accounted for 9.5 per cent of GDP in 2009, but accounted for 4.3 per cent of GDP in 2013.
The social protec on fl oor concept promoted by the United Na ons (UN) provides a relevant framework for describing social security, social protec on and poverty allevia on programmes in Mongolia, coordina ng interven ons and iden fying the necessary measures to establish a more holis c, rights-based and systemic social protec on. The assessment based na onal dialogue (ABND) on social protec on and employment promo on measures is a relevant tool for mapping the situa on, drawing recommenda ons for the further development of social protec on provisions to establish a minimum social protec on fl oor for all the popula on. The ABND is also completed by a rapid cos ng exercise to es mate the cost of introducing addi onal social protec on provisions. Stakeholders involved in the ABND exercise include line ministries, social partners, civil society, academia, UN agencies, other development partners and relevant bilateral donors engaged in social protec on.
Recognizing the importance of ensuring at least a social protec on fl oor, the Government of Mongolia sought support from the UN Country Team to embark on the ABND. In July 2013, a joint United Na ons and Government Social Protec on Working Group, chaired by the ILO, was formed to support the process which was offi cially launched by the Ministry of Popula on Development and Social Protec on (MPDSP) and the UN Country Team in September 2013.
The present report off ers the results of the ABND. The fi rst part recalls the concept and methodology adopted in Mongolia. The second part shares the results of the mapping of the social protec on situa on in Mongolia and agreed recommenda ons to realize the social protec on fl oor. Finally, the third part informs on the cost es mate of a social protec on fl oor for Mongolia, using the ILO Rapid Assessment Protocol (RAP), before concluding with steps for the eff ec ve implementa on of the recommenda ons and the achievement of a social protec on fl oor in Mongolia.
4 Na onal Sta s cal Offi ce of Mongolia: Sta s cal Yearbook, 2008–2013 edi ons (Ulaanbaatar, 2013).5 Na onal Sta s cal Offi ce of Mongolia: Mongolia Yearbook 2013 (Ulaanbaatar, 2013).6 Social expenditures include social welfare expenditures, subsidies to the social insurance, and social transfers from
the Human Development Fund.
3
2. Context and processIn April 2009, the High Level Commi ee on Programmes of the United Na ons (UN) Chief Execu ves Board adopted the social protec on fl oor as one of its joint ini a ves to face the fi nancial and economic crisis and accelerate recovery. This ini a ve supports countries in planning and implemen ng sustainable social protec on strategies that include social benefi ts and essen al social services. As this objec ve transcends the mandate of any single body or agency, the ini a ve built a global coali on of UN agencies (the Food and Agriculture Organiza on of the United Na ons, Offi ce of the High Commissioner for Human Rights, United Na ons Programme against HIV/AIDS, United Na ons Department of Economic and Social Aff airs, United Na ons Development Programme (UNDP), United Na ons Educa on, Science and Cultural Organiza on, United Na ons Educa on, Science and Cultural Organiza on, United Na ons Human Se lements Programme, Offi ce of the United Na ons High Commissioner for Refugees, United Na ons Children’s Fund (UNICEF), United Na ons Offi ce on Drugs and Crime, UN Regional Commissions, United Na ons Relief and Work Agency for Pales ne Refugees in the Near East, World Food Programme and World Meteorological Organiza on), the Interna onal Monetary Fund (IMF) and the World Bank, as well as development partners and leading non-governmental organiza ons (NGO). Establishing a social protec on fl oor is part of Target 1.3 of the forthcoming Sustainable Development Goals.7
At its 101st session, the Interna onal Labour Conference adopted the Social Protec on Floors Recommenda on, 2012 (No. 202) which reaffi rms the role of social security as a human right and a social and economic necessity, and provides guidance on building social protec on fl oors within progressively comprehensive social security systems. Recommenda on No. 202 was adopted almost unanimously (453 votes in favour and one absten on) reaffi rming the commitment by all ILO member States to extend social protec on. Recognizing the crucial role of social protec on in social and economic development and notably in comba ng poverty, vulnerability and social exclusion, and realizing decent work for all, the Conference also adopted the “Resolu on concerning eff orts to make social protec on fl oors a na onal reality worldwide,”8 which invites governments, employers, and workers to jointly give full eff ect to Recommenda on No. 202 as soon as na onal circumstances permit.
Social protec on fl oors are na onally defi ned sets of rights and transfers that enable and empower all members of a society to access a minimum of goods and services at all mes. They can be composed of:
• essen al services, which refer to geographical and fi nancial access to services such as water and sanita on, adequate nutri on, health, educa on, and housing; and
• essen al transfers, which refer to cash and in-kind transfers to the poor and the vulnerable to provide a minimum income and health security.
The social protec on fl oor takes a holis c approach, calling for access to a minimum set of goods and services for all age groups, but with par cular a en on to marginalized and vulnerable groups (such as ethnic minori es and people with disabili es). Once a social protec on fl oor has been established, countries may then choose to progressively extend to their popula ons higher levels of social protec on (e.g. by expanding free primary educa on to include free secondary and pre-primary educa on or by increasing levels of benefi ts through a mix of non-contributory and contributory schemes.)
7 h p://www.socialprotec onfl oor-gateway.org/216.htm8 ILO: “Resolu on concerning eff orts to make social protec on fl oors a na onal reality worldwide”, in Provisional Record No. 14, Interna onal Labour Conference, 101st Session (Geneva, 2012).
4
The social protec on fl oor promotes income security through a basic set of guarantees that aim to create a situa on in which:
• a na onally defi ned set of goods and services, cons tu ng essen al health care, including maternity care, meet the criteria of availability, accessibility, acceptability and quality;
• all children enjoy basic income security at least at the level of the na onally defi ned poverty line, ensuring access to nutri on, educa on, care and any other necessary goods and services;
• all those in ac ve age groups who are unable to earn suffi cient income, in par cular in cases of sickness, unemployment, maternity and disability, enjoy basic income security at least at the level of the na onally defi ned poverty line; and
• all residents in old age enjoy basic income security at least at the level of the na onally defi ned poverty line.
Defi ning the components as guarantees gives fl exibility to defi ne the social protec on fl oors based on na onal contexts and exis ng social protec on systems. The four guarantees set minimum performance or outcome standards with respect to the access, scope and level of income security and health care in na onal social protec on systems rather than prescribing a specifi c architecture of na onal social protec on systems. While not all countries will be able to immediately put in place all components for the whole popula on, the social protec on fl oor provides a framework to plan a progressive implementa on that ensures a holis c vision of the social protec on system and that exploits synergies and complementari es between diff erent components.
The social protec on fl oor also serves as a tool for gender empowerment. Globally, women are dispropor onately represented among the poor and the vulnerable. They face many legal and social constraints that limit their access to formal employment, produc ve assets and be er-remunerated work or to equal remunera on with male counterparts. Women tend to be confi ned to more casual, insecure, and hazardous forms of work and self-employment, par cularly in the informal economy, with no or only limited access to social protec on. The social protec on fl oor, which aims at extending basic social protec on to those who are currently excluded, has great poten al to redress exis ng gender imbalances. In socie es where women are expected to take on caring roles, social transfers are also found to be par cularly important supports.
While Asia and the Pacifi c have made considerable economic progress in the last two decades and have li ed millions out of poverty, not all popula ons have benefi ed from these gains. Millions of people are s ll poor, le in vulnerable employment, deprived of basic rights and exposed to increased risks due to changing domes c economic pa erns, global economic crises and climate change. This threatens to reverse hard-won human development gains of the past decade. Given this context, it is not surprising that social protec on, which refers to a range of policy instruments for ensuring that the rights of all people to income security and access to a minimum level of social services are realized, is high on the policy agenda in the region. Recently, at the sixty-seventh session of the UN Economic and Social Commission for Asia and the Pacifi c in May 2011, Member States passed a resolu on on “Strengthening social protec on systems in Asia and the Pacifi c”.
5
3. Assessment based na onal dialogue: Objec ves, methodology and process
3.1. Objec ves
To support the implementa on of social protec on fl oors in Asia, the ILO has elaborated methodological guidelines to undertake a par cipatory process to design na onal social protec on fl oors. The methodology of the assessment based na onal dialogue (ABND) methodology consist on:
• assessing the social protec on fl oor’s elements already in place and the coverage gaps in a country;
• iden fying the policy op ons to fi ll the gaps to complete a social protec on fl oor, and es ma ng the cost of its implementa on; and
• endorsing the iden fi ed policy op ons at the na onal level.
The ABND methodology, process and tools were tested in Cambodia, Indonesia, Thailand and Viet Nam from 2011 to 2013. Based on the Asian experience, the Assessment based na onal on social protec on: A good prac ces guide has been developed.9 Together with Mongolia, Lao PDR, Myanmar and the Philippines are currently conduc ng a similar exercise, as well as Kyrgyzstan and Mozambique.
The main objec ves of the ABND on social protec on are:1. to contribute to the na onal dialogue on social protec on with all key stakeholders in the country,
including the Government of Mongolia, social partners, civil society organiza ons, academia, and the UN Country Team, while raising awareness on the social protec on fl oor concept and increasing capaci es in policy formula on and planning;
2. to iden fy priority areas for government interven on in the fi eld of social protec on and the necessary measures for the establishment of a more comprehensive, rights-based and systemic social protec on fl oor in Mongolia;
3. to support informed decision-making towards the future development of the na onal social protec on fl oor while ensuring that the proposed new schemes and benefi ts do not threaten the fi nancial sustainability of the social security system as a whole;
4. to defi ne the partnership and ac on plan on social protec on between the Government of Mongolia and the UN system; and
5. to serve as a baseline informa on against which the future and progressive realiza on of the social protec on fl oor in Mongolia can be monitored in the framework of the Na onal Economic and Social Development Plan.
9 V. Schmi and L. De: Assessment based na onal dialogue: Good prac ces guide (ILO, 2013).
6
3.2. Generic methodology and process
The assessment describes exis ng social security schemes and social protec on programmes, and iden fi es policy gaps and implementa on issues for each of the four basic guarantees men oned above. This assessment helps to draw recommenda ons for the further design and implementa on of social protec on provisions to reach a minimum social protec on fl oor for all the popula on. The subsequent rapid cos ng exercise es mates the cost of introducing these addi onal social protec on provisions. The assessment based na onal dialogue (ABND) on social protec on and employment promo on consist of three steps outlined below.
STEP 1 – Development of the assessment matrix – An assessment matrix containing an inventory of exis ng social security, social protec on, ac ve labour market and poverty allevia on programmes for each of the four guarantees is developed and validated by all stakeholders engaged in social protec on, e.g. line-ministries, social partners, civil society and development partners. The matrix helps to iden fy policy gaps, implementa on issues and recommenda ons for the design and implementa on of further social protec on provisions with the aim of guaranteeing the social protec on fl oor to the whole popula on.
STEP 2 – Cost es mate – The cost of the proposed social protec on provisions are es mated and projected over a ten-year period (depending on na onal sta s cs available) using the ILO RAP, depicted in fi gure 3. This cos ng exercise can serve as a basis for discussions on available fi scal space, government budget realloca ons and the priori za on of diff erent social protec on policy op ons.
STEP 3 – Finaliza on and endorsement – The fi nal recommenda ons, supported by their cost es mate, for extending social protec on and establishing at least a social protec on fl oor in the country are shared at higher levels of the government for na onal endorsement. The report approved by the government will serve to prepare for the next steps, which may include feasibility studies for the design of new schemes, expansion of exis ng schemes and establishment of coordina on mechanisms.
Figure 3. RAP model structure
Source: Schmi and De, 2013.
Table 2 provides an overview of the informa on provided by the ABND process, and the steps that can be taken based as a result.
7
Table 2. Scope of the ABND
Ques ons answered by ABND
What is the situa on? Descrip ons of exis ng schemes, laws, and regula ons for each of the four guarantees.
How far are we from the full realiza on of the social protec on fl oor?
A comparison of exis ng schemes with the social protec on fl oor framework – Does the en re popula on have access to health care and income security? Are the benefi ts adequate?
What should we do to complete the social protec on fl oor?
Recommenda ons for new or extension of exis ng social protec on provisions.
How much will it cost to implement a social protec on fl oor?
Cost calcula ons of the addi onal social protec on provisions using the RAP protocol, cost es mates rela ve to GDP and government revenues and expenditures, and the incorpora on of es mated costs into government budget projec ons, providing preliminary indica ons of the aff ordability of proposed social protec on provisions.
Implementa on guidance provided by ABND
How to fi nance the new social protec on provisions?
Recommenda ons on how to fi nance the new provisions through realloca on of government expenditures, increases in the fi scal space, or other means.
What will the return on investment be?
Analysis of the impact of social protec on provisions to reduce poverty and inequality, increase employability, produc vity and economic growth; and eventually an assessment of the rate of return on investments in the social protec on fl oor.
How to advocate for the recommenda ons?
Development of social marke ng and communica on strategies to advocate for the implementa on of the recommenda ons among the general public, civil society organiza ons, workers and employers, the parliament and the Government.
Source: Schmi and De, 2013
The ABND process in MongoliaFrom July 2013 to December 2014, the UN/Government (UN/G) Social Protec on Working Group engaged line ministries, government agencies, UN agencies, social partners, civil society organiza ons, academia, and other relevant stakeholders in the assessment of the social protec on situa on in Mongolia, to iden fy policy gaps and implementa on issues, and draw appropriate policy recommenda ons for the achievement of a comprehensive social protec on fl oor in Mongolia.
The ABND process in Mongolia was based on:
• literature review of studies, reports, laws, regula ons and sta s cal reports;• bilateral consulta ons, technical workshops and a wide range of na onal consulta ons to share
the results at each step, gather inputs and seek feedback, as well as enhance a na onal dialogue among the Government, social partners, civil society organiza ons and academia;
• policy consulta ons and training workshops to develop capaci es;
• establishment of the UN/G Social Protec on Working Group; and
• reinforcement of policy dialogue and coordina on between the UN system, line ministries, academia and civil society organiza ons.
This sec on summarizes the ac vi es conducted under each of the three steps of the assessment process.
8
STEP 1 – Development of the assessment matrix
Desk review: From July 2013 to September 2013, the ILO compiled a comprehensive inventory of exis ng social security, social protec on programmes for each of the four guarantees, mainly through mainly desk review. The UN/G Social Protec on Working Group reviewed and endorsed the preliminary assessment matrix to be presented during the fi rst na onal dialogue of the ABND process.
Na onal dialogue No. 1: The preliminary assessment matrix was presented and reviewed at the Launch Workshop of the ABND on 5 September 2013,10 which was a ended by more than 50 representa ves from the ministries, social partners, civil society organiza ons, academia, and the UN Country Team. Some of the key points of policy gaps and implementa on issues were raised from this workshop to further design and implement social protec on provisions with a view to close gaps in the social protec on fl oor.
Bilateral consulta ons: From September to November 2013, the UN/G Social Protec on Working Group, led by the ILO, conducted bilateral consulta ons for stock-taking of exis ng social protec on schemes and related laws and regula ons for each of the four guarantees and valida on of the matrix by the Ministry of Popula on Development and Social Protec on (MPDSP), the Ministry of Labour (MOL), Ministry of Health (MOH) (at the me of the consulta ons), Ministry of Finance (MOF), the Social Insurance General Offi ce (SIGO), Social Welfare Services General Offi ce, state and local organiza ons at the aimag and soum levels (in Uvurkhangai and Bayankhongor), Mongolian Na onal University, Academy of Public Management, the Mongolian Employers Federa on, and the Confedera on of Mongolian Trade Unions.
Na onal dialogue No. 2: The revised assessment matrix including a number of key fi ndings of policy gaps and implementa ons issues, as well as recommenda ons was presented and validated at the Assessment Matrix Valida on Workshop on 5 December 2013.11 More than 60 representa ves from the ministries, social partners, civil society organiza ons, academia and the UN Country Team a ended the second dialogue. Concrete policy recommenda ons emerged from this mee ng to further design and implement social protec on provisions with a view to close gaps in the social protec on fl oor.
Finaliza on of the matrix: Based on the inputs from the two na onal dialogues, the assessment matrix and the legal framework were fi nalized.
STEP 2 – Cos ng using the ILO RAPScenarios: The priority recommenda ons were discussed and translated into “costable” scenarios, namely specifi c social protec on provisions that need to be introduced or further expanded to fi ll the gaps during the UN/G Social Protec on Working Group mee ng on 13 March 2014. Par cipants included 13 experts from MPDSP, MOL and UN (ILO, UNICEF, UNDP, WHO).
Cos ng: On behalf of the UN/G Social Protec on Working Group, the ILO consultant gathered all informa on and data such as popula on data, labour par cipa on rates, economic indicators, and government budgets necessary to conduct the cost calcula on of the proposed scenarios. The MAPS project undertook the cost calcula ons and projec ons over the 2015–20 period for the proposed provisions using the ILO RAP.
Na onal dialogue No. 3: The scenarios were presented and reviewed at the third na onal dialogue Assessing the cost of SPF: Methodology and Preliminary Results on 2 May 2014.12 In addi on an introduc on to the RAP methodology and the preliminary results were shared with the stakeholders.
12 Mee ng content is available at h p://www.social-protec on.org/gimi/gess/ShowProjectWiki.ac on?wiki.wikiId=2419.
10 Mee ng content is available at h p://www.social-protec on.org/gimi/gess/ShowProjectPage.do?pid=2287.2013).11 Mee ng content is available at h p://www.social-protec on.org/gimi/gess/ShowProjectWiki.ac on?wiki.wikiId=2202.2013).
9
The feedback and comments of the workshop were used for fi nal calcula ons of the social protec on fl oor using the ILO RAP.
Training on the RAP: In addi on, the ILO organized a hands-on training course on 30 April 2014 called How to Cost and Finance Social Protec on Schemes. About 25 par cipants from the Government, representa ves of workers and employers, civil society and academia were familiarized with the ILO RAP developed for Mongolia.
STEP 3 – Finaliza on and endorsement
Endorsement of RAP results: The fi nal results of RAP cos ng were consolidated by the UN/G Social Protec on Working Group on 9 September 2014, which was a ended by representa ves of ILO, UNICEF, WHO and UNDP.
Na onal dialogue No. 4: On 11 September 2014, the UN/G Social Protec on Working Group organized the fourth dialogue Assessment Based Na onal Dialogue Workshop: Final Results and Recommenda ons to the Government,13 gathering representa ves from the Government, social partners, civil society organiza ons, academia, and the UN Country Team shared the results of the cos ng exercise and discussed the next steps, e.g. iden fi ca on of possible measures to increase the fi scal space for fi nancing social protec on, improved integra on of policies on the social protec on fl oor and its delivery, and further steps for obtaining endorsement of the fi nal report by the UN Country Team, Government and social partners. Among other follow-up ac ons, the fourth dialogue decided on preparing a campaign video “Why social protec on is important to me?” and a possible monitoring framework for measuring the eff ec ve implementa on of the ABND recommenda ons and realiza on of the social protec on fl oor.
Dra ing of the report: The ILO, in its posi on of chair of the UN/G Social Protec on Working Group dra ed the full report during the period from September to December 2014. Early December 2014, the report was circulated among the UN/G Social Protec on Working Group for review and comments. Publica on of the report is expected by March 2015.
Advocacy: A er the launch of the report (tenta vely April 2015), the advocacy work should be con nued to seek for the inclusion of some recommenda ons in na onal development plans and social protec on policies and eff ec ve implementa on.
Figure 4 provides a pictorial representa on of the ABND process in Mongolia.
The recommenda ons agreed through the na onal dialogue were discussed against the principles and parameters of the interna onal labour standards related to social security, and in par cular:
• Social Protec on Floors Recommenda on, 2012 (No. 202);
• Social Security (minimum standards) Conven on, 1952 (No. 102);
• Employment Injury Benefi ts Conven on, 1964 (No. 121);
• Invalidity, Old-age and Survivors Benefi ts Conven on, 1967 (No. 128);
• Maternity Protec on Conven on, 2000 (No. 183); and
• Equality of Treatment (Social Security) Conven on, 1962 (No. 118).
13 Mee ng content is available at h p://www.social-protec on.org/gimi/gess/ShowProjectWiki.ac on?wiki.wikiId=1569.
10
Figure 4. The ABND process in Mongolia
Source: UN/G Social Protec on Working Group, 2015.
3.3. Overview of the na onal social protec on context
Fast economic growth
Mongolia has experienced remarkable economic growth over the last decade. A er the 2008–09 global fi nancial crisis, na onal GDP grew by double-digit percentages and economic growth was perceived as the main poverty reduc on instrument. The impressive overall economic performance contributed to a sharp decline in poverty levels, and the na onal sta s cs offi ce reported that the total poverty rate fell from 38.7 per cent of the total popula on in 2010 to 27.4 per cent in 2012.
The main economic and poli cal challenges in Mongolia are linked to ensuring steady growth through the boom and bust cycles likely to impact this resource-dependent economy. Double-digit economic growth over the past few years — 2011 witnessed 17.3 per cent GDP growth — was based on investment in and produc on and export of minerals. Mongolia is a major producer of several minerals including copper, gold, zinc, fl uorspar and coal. With extensive reserves, it has the poten al to increase produc on considerably.
However, Mongolia has suff ered ongoing setbacks to its economic advancement. Indeed, growth steadily slowed from 17.3 per cent in 2011 to 11.7 per cent in 2013. Both the Interna onal Monetary Fund (IMF) and World Bank (WB) es mate GDP will decline to 9.5 per cent in 2014; and, depending on Mongolian policy decisions, forecasts for 2015 range from a high of 12 per cent to as low as 2 per cent. The IMF cites loose fi scal and monetary policies as likely causes for nega ve economic adjustment.
The poverty rate is unacceptably high for a country undergoing rapid economic growth. Insuffi cient access to health and other basic services, natural disasters, lack of employment opportuni es, inequali es in regional development and a mismatch between educa on and the demand of the labour market have been iden fi ed as some of the underlying causes of poverty.
11
Social protec on, a recognized priority in MongoliaMongolia already has in place a well-ramifi ed social security system, with a compulsory social insurance scheme extended to herders, self-employed and informal workers on a voluntary basis. The country is also equipped with mandatory social health insurance, universal child allowance and a number of social welfare programmes, as well as recent laws to expand employment promo on and local development programmes. However, current development in Mongolia and over-dependence on the mining sector may pose a threat to sustained economic growth and con nuity of social policies. In addi on, the administra on and delivery of social security benefi ts and employment services across a very sparsely populated country remains challenging, leaving more than 75 per cent of herders, self-employed and informal economy workers with insuffi cient income security.
In this context, the government of Mongolia has measured the cri cal importance of strengthening social policies and establishing a minimum social protec on fl oor to close urban and rural development dispari es.
Overview of the social protec on system in Mongolia
The current social protec on system of Mongolia consists of three key elements: social welfare scheme (both targeted and universal); social insurance; and employment promo on services, as shown in fi gure 5.
Figure 5. Overall structure of the social protec on system in Mongolia
Source: Ministry of Social Welfare and Labour, Social security sector strategy paper, 2003.
The Mongolian social insurance system is based on contributory payments by insured workers and their employers and provides for a number of benefi ts. The social insurance consists of fi ve schemes and is depicted in fi gure 6.
12
Figure 6. The social insurance schemes of Mongolia
Social health insurance
Social insurance schemes
Pension insurance
Allowance insurance
Work injury and occupational
disease
Unemployment insurance
Medical care and services
Refunding of medicines
Old age
Disability
Survivors
Maternity
Sickness
Funeral
Unemploy-ment benefit
Training and retraining
Disability
Survivors
Loss of employability
Rehabilitation employability
Prevention activities
Rehabilitation services
Source: SIGO, The package law on social insurance, 1994.
Government offi cials, Mongolian and foreign ci zens and stateless people employed on the basis of labour contract are required to contribute to the social insurance on a mandatory basis while herders, informal economy and self-employed shall be insured voluntarily. Recent data on the size of the economically ac ve popula on and par cipa on in mandatory and voluntary insurance schemes are provided in table 3.
Table 3. Number of insured under the social insurance scheme (in thousands)
2010 2011 2012 2013Male Female Male Female Male Female Male Female
Economically ac ve popula on
628 870 531 085 635 034 567 732 654 144 597 080 668 590 608 115
Social insurance categories
Insured under mandatory scheme
270 183 278 279 315 963 310 241 357 526 348 959 387 235 379 580
Insured under voluntary scheme
22 777 39 906 29 096 52 240 34 800 66 172 52 115 94 987
Herders 2 787 3 954 4 652 6 548 5 298 7 201 10 527 13 196Self-Employed 6 853 12 539 7 463 13 935 9 630 19 286 15 818 30 656Others (informal economy workers)
13 139 23 415 16 995 31 775 19 945 39 759 26 398 51 447
Source: SIGO, adjusted economically ac ve popula on with RAP assump ons, 2015.
13
As of the end of 2013, some 766,815 people were insured under the mandatory social insurance scheme while only 147,100 people joined the scheme on a voluntary basis. A total of 71.6 per cent of the economically ac ve popula on is insured under the social insurance system (table 4). However, those contribu ng to the voluntary scheme represent only 23.3 per cent of those who are eligible to par cipate, i.e. herders, self-employed, informal economy workers and unemployed.
Table 4. Insured under the social insurance scheme as a percentage of the economically ac ve popula on
Social insurance categories 2010 2011 2012 2013Insured under mandatory scheme 47.3 52.1 56.5 60.1Insured under voluntary scheme, of which 5.4 6.8 8.1 11.5Herders 0.6 0.9 1.0 1.9Self-Employed 1.7 1.8 2.3 3.6Others (informal economy workers) 3.2 4.1 4.8 6.1
Total 52.7 58.9 64.6 71.6Source: SIGO, adjusted economically ac ve popula on with RAP assump ons, 2015.
Coverage under the mandatory social health insurance scheme is nearly universal, extending to more than 90.0 per cent of the popula on in formal employment.
The tax-funded social welfare system plays an important role in providing public support to members of vulnerable groups such as older people and people with disabili es, orphans, infants, women during maternity or single mothers with many children who are unable to live independently. There are 29 programmes stated by law targe ng specifi c groups of the popula on accoun ng for 1.0 per cent of GDP.14 Social welfare expenditure more than doubled, increasing from MNT99.3 billion to MNT237.1 billion between 2010 and 2014, resul ng in one out of four people being in receipt of some social welfare benefi t, impac ng posi vely on poverty levels. During the period 2010 to 2012, the na onal poverty headcount index decreased from 38.7 per cent to 27.4 per cent, and in rural areas from 49.0 per cent to 35.5 per cent.15
One important fi nancing source of non-contributory social protec on schemes is a Human Development Fund (HDF), established in accordance with the Law on Human Development Fund approved by the Parliament in November 2009. The HDF builds on revenues from the mineral and mining sectors and has an objec ve of redistribu ng wealth equally among all ci zens of Mongolia. The redistribu on shall be made in forms of payment for pension and health insurance contribu ons, payment for housing, cash transfers, payment of tui on fees and health services and child support benefi ts. The Child Money Programme is one of the fl agship programmes funded by the HDF.
Main form of employment is herding, self-employment and informal employment (55.7 per cent of the economically ac ve popula on in 2013). The unemployment rate was 7.8 per cent in 2013 (NSO). However, there is a persistent high underemployment and hidden unemployment in the informal economy and livestock husbandry sector characterized by low produc vity and income, and poor working condi ons. Due to underdeveloped infrastructure and small popula on, the labour market outside livestock husbandry remains limited in rural areas, resul ng in a growing labour mobility from rural to urban areas.
On the ins tu onal side, in 2012, the Ministry of Social Welfare and Labour was divided into two ministries, Ministry of Labour (MOL) and Ministry of Popula on Development and Social Protec on (MPDSP). Such restructura on intended to increase employment, alleviate poverty and promote human development by expanding social protec on and upda ng ac ve labour market policies (ALMPs). MOL is commi ed to reinforce the applica on of the Law on Employment Promo on, fi rst adopted in 2001 and revised in 2011, notably with the reinforcement of the Employment Promo on Programmes launched in 2011.
14 Programmes implemented by the Social Welfare Agency of the MPDSP and included under the Law on Social Welfare, 2012; the Law on Social Security for People with Disabili es, 2005; Law on Social Security of Senior Ci zens, 2005; and Law on Supplementary Allowance for Honored Senior Ci zens, 2008.
15 NSO, 2014.
14
15
4. Step 1. Development of the assessment matrix and the results of the ABND on social protec on and employment promo on in Mongolia
The assessment matrix is a tool to analyse to what extent exis ng and planned social protec on provisions fulfi l the four guarantees of the social protec on fl oor framework. Na onal Stakeholders can use the social protec on fl oor matrix to iden fy policy priori es towards achieving complete social protec on. For each of the four guarantees, the matrix lists exis ng social protec on provisions, their legal and eff ec ve coverage, design gaps and implementa on issues, and iden fi es opportuni es for improvement.
Structure of the assessment matrix
Figure 7. Structure of the assessment matrix
Source: Schmi and De, 2013.
Figure 7 illustrates the structure of the assessment matrix. The fi nal assessment matrix is annexed to this report.
The sec ons below provide a detailed descrip on of the informa on contained in the matrix for each of the four guarantees.
16
4.1. Health care
“A na onally defi ned set of goods and services, cons tu ng essen al health care, including maternity care that meets the criteria of availability, accessibility, acceptability and quality.”
Exis ng provisions
The Cons tu on of Mongolia en tles each resident to health protec on and medical care. Before 1990, the provision of health-care services to the whole popula on in Mongolia was the responsibility of the government, which ensured equitable services through full government budget fi nancing. During the transi on to a market economy and an economic downturn that reduced State resources, the Government dras cally cut budget alloca ons for health. Social health insurance (SHI) aimed to maintain the already achieved level of health care, ensure the popula on was protected from health-related fi nancial risks and deliver services equitably and with suffi cient quality. One of fi ve types of social insurance based on the social solidarity principle, the universal SHI aims to cover all Mongolian ci zens on a mandatory basis and off ers voluntary enrolment for foreign residents or stateless person living in Mongolia as well. It is based on the Law on Ci zens Health insurance, 1994.
The introduc on of the SHI scheme created a stable fi nancing source for the health sector. Currently, health sector fi nancing relies on several sources, including the na onal budget, SHI Fund, fees for health-care services and foreign loans and aid. The goal of the health sector in Mongolia has been to reach universal health coverage through a sustainable fi nancing mechanism. The SHI scheme provides fi nancial support for in-pa ent and out-pa ent services in hospitals at all levels. It also covers expenses related to family group prac ces and ambulatory care, and subsidizes drugs according to the list of fi xed charges. Primary health-care services, pregnancy and delivery care, tuberculosis and pallia ve cancer treatment are directly fi nanced through the government budget and are not charged to the SHI Fund.
17
The MPDSP supervises the management of SHI Fund opera ons through its implemen ng agency, the Social Insurance General Offi ce (SIGO). The Ministry of Health and Sports (MOHS) determines the main policy orienta ons that defi ne service and benefi ts packages, tariff s and drug discounts.
Box 1
Towards universal health coverage
In 2013, the MPDSP, together with the MOH, the German Society for Interna onal Coopera on (GIZ), WHO and Providing for Health (P4H), launched the Long Term Strategy for the Development of the Health Insurance of Mongolia (2013–22).16 This document describes the following key challenges for achieving universal health coverage:
1. The low understanding and knowledge of the signifi cance of health insurance among poten al par cipants means they are less willing to make contribu on payments and the monthly contribu ons amount is not set at an op mal level.
2. Health insurance enrolment is declining par cularly among self-employed workers, herders, and unemployed workers and students. The health insurance system is not eff ec ve in collec ng contribu ons from these groups. According to SIGO es mates, health insurance coverage was 90.4 percent in 2012.
3. Although the health needs of the popula on are not fully met, the SHI Fund presents a signifi cant posi ve balance (equal to 95.3 per cent of the annual SHI Fund revenue in 2012). The health insurance benefi t package does not completely cover services, so the insured must pay if he or she receives services that are omi ed from the benefi t package. No considera on is given to out-of-pocket (OOP) payments when defi ning the benefi t package, and OOP expenses have increased year-on-year. The Na onal Health Sector Financing Strategy specifi ed the goal of keeping OOP payments within 25 per cent of total health expenditures, but they have increased by 26.6 per cent since 2008 and reached 41.0 per cent in 2013, according to WHO sta s cs.
4. There is no legal environment for the Health Insurance Organiza on (HIO)17 to carry out responsibili es of an ac ve purchaser such as assessing the needs of the insured, defi ning the health-care services, selec ng health-care providers and nego a ng prices and tariff s of health-care services; the purchasing ac vity is carried out by HIO through contrac ng health organiza ons. However, the absence of tools or guidelines to monitor the implementa on of the contract leads to some negligence from certain providers resul ng in poor quality of care.
5. The func ons and responsibili es of SHI stakeholders are stated by the Ci zens’ Health Insurance Law with considerable fragmenta on and overlapping. Par cipa on of non-government stakeholders, namely employers and workers in the decision making process is not sa sfying while their capacity to engage in an eff ec ve social dialogue in this area is weak.
1 The Long-term strategy for the Development of the Health Insurance was approved by the Government resolu on No. 143 (13 Apr. 2013).
2 Under the current law on Ci zens’ Health Insurance, HIO is part of SIGO. Source: UN/G Social Protec on Working Group, 2015.
The Long Term Strategy for the Development of the Health Insurance of Mongolia (2013–22) aims at achieving universal health care in Mongolia. The document has iden fi ed the following key interven on areas: health insurance coverage and revenue, benefi t package, health-care quality and purchasing, health insurance system governance, health insurance organiza onal capacity and private health insurance (PHI). The objec ve and strategies associated with each key area are outlined in table 5.
18
Table 5. Objec ves and strategies for developing health insurance in Mongolia (2013–22)
Key areas Objec ves StrategiesHeath insurance coverage and revenue
Increase the health insurance coverage and ensure stability of the SHI Fund so to establish it as a sustainable fi nancial mechanism to ensure universal health care.
Fully enrol the whole popula on by extending eff ec ve coverage among residents not yet par cipa ng in the health insurance;Introduce a contribu on based on the minimum wage for those par ally subsidized by the government;Improve management and policy planning of SHI Fund to balance revenue and expenditures; andReduce OOP payments to 25 per cent of total health expenditures.
Health insurance benefi t package
Defi ne the benefi t package of the health insurance so that the en re popula on is provided with health-care services in line with all their essen al health needs
Expand the benefi t package funded by SHI Fund to progressively include health-care services currently funded by the government budget into the package;Assess economic, social protec on and health impacts of including primary health care into the SHI Fund benefi t package (currently State funded) and make an appropriate decision to ensure accessibility to services in remote areas;Set the co-payment amount according to the level of health care in order to deliver the benefi t package in an effi cient manner; andEstablish an appropriate organiza onal structure and process to discuss and make decisions on the benefi t package to be purchased by the SHI Fund.
Quality of health care and purchasing
Improve quality assurance of health-care servicesSet up an ac ve strategic purchasing system for health-care services
Use contrac ng arrangement between HIO and health-care providers as the tool to purchase quality health-care services; and specifi cally include into the contract the du es of the par es involved and the details for monitoring the fulfi lment of these du es;Set up an ac ve health-care service purchasing system with capaci es to select and contract health-care providers; set the health-care benefi t package and tariff s in line with the needs of the insured; andIntroduce quality management instruments such as accredita on, peer review and sa sfac on survey of the insured in order to improve the quality management system required for purchasing quality health-care services based on evidence.
Governance Introduce good governance principles into the health insurance system and increase confi dence and trust in SHI
Create a good governance system which considers and unites the interests of the stakeholders by working based on the principles of accountability, transparency, jus ce and effi ciency;Ensure equal par cipa on of SHI Fund stakeholders in the governance structure of the SHI scheme; andEnsure that HIO autonomously plans and distributes resources of the health insurance fund independently from any party.
Private health insurance
Ensure coherency of the health insurance system by enabling private health insurances to provide complementary services covering health-care services not yet included in SHI benefi t package
Establish private health insurance as a complementary tool for fi nancial protec on of the popula on and for expansion of the scope of health-care services provided in order to reach universal health care;
Clarify the legal environment that allows residents to obtain dual insurance membership on voluntary basis as an addi onal and complementary insurance scheme in order to get coverage for the health-care services not included into the benefi t package; and
Establish a regular mechanism of collabora on between private health insurance and health insurance organiza on.
Source: MPDSP, MOH, 2013.
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The new Law on Health Insurance was adopted on 29 January 2015. The law will come into force on 1 July 2015, with certain provisions being enforced only from 1 January 2016. Major changes include:
• contribu ons of those subsidized by the government except for children (Category III: children 0–18 years old and certain vulnerable groups- see below) and other non-subsidized groups except for students of the voca onal training centres (Category II: Herders and unemployed; and Category IV: Self-employed) are increased (formerly, monthly contribu on per subsidized person – MNT670 a month, or MNT8,040 a year) to at least 2.0 per cent of monthly minimum wage (MNT3,840 a month or MNT46,080 a year) (rate annually adjustable by Government’s decision);
• contribu ons of students of the voca onal training centres (part of Category II) and children 0–18 years old who are subsidized by the government (part of Category III) are increased (formerly, monthly contribu on per subsidized person – MNT670 a month, or MNT8,040 a year) to at least 1.0 per cent of minimum wage or MNT1,920 per month (MNT23,040 annually);
• university students, who are formerly fully subsidized by the government, are now forming a new category: they will contribute to the scheme at the level of 1.0 per cent of minimum wage (MNT23,040 a year) star ng from 1 January 2016. For the year 2015, the Government will bear the full cost of student contribu on;
• insured individuals (excluding those subsidized by the government) whose payments for health-care services have exceeded their en tled threshold to purchase health-care services can use the unused por on of their family members once a year;
• according to a decision at the na onal level, drugs prescribed by out-pa ent doctors of aimag and district hospitals are now included in the list of insured drugs, and are therefore subject to discounts (the discount was previously applicable only at the primary health-care level); and
• the benefi t package covered by the SHI is extended to some expensive care, prosthe c devices, and cancer and pallia ve care.
16 The informa on in this sec on refl ects the Law on Ci zens Health Insurance, 2002.
Legal framework
Law on Ci zens Health Insurance (25 April 2002); Law on Health (25 May 2011), Ar cles 15.1, 23 and 24; Law on Health Insurance adopted on 29 January 2015, entering into force on 1 July 2015.16
Target group All Mongolian ci zens and foreign residents or stateless person. The scheme is mandatory for all Mongolian ci zens (Ar cles 6.1.1–6.1.11). Foreign residents can be insured on a voluntary basis (Ar cle 6.2).
Benefi t Benefi t package: Out-pa ent and in-pa ent care services (provided by primary and secondary level hospitals), day care service (secondary level), in-pa ent service of tradi onal medicine clinics, rehabilitee care provided by sanatoria and pallia ve and drug discount; free check-up tes ng and diagnos c service for any case at the request of the insured, not exceeding MNT56.000 in each case.
Bonus: In case an insured did not receive any benefi t from SHI Fund during last 36 months, s/he is eligible for free check-up tes ng of MNT80,000 each year.
Benefi t ceiling: MNT1,380,000 per insured person per year.Payment mechanism
The SHI Department of SIGO proceeds payments based on invoices issued by service providers.
Excluded services
Primary health-care service, pregnancy and delivery care, tuberculosis and cancer treatment are directly fi nanced by Government budget.
20
17 The sta s cs may include double coun ng. The system counts every insured registered with the scheme throughout the year and treats data at the end of that year, which means that those who shi ed between categories, e.g. from formal employee to self-employed, or from employment to re rement are counted twice during that specifi c year.
Financing This scheme is fi nanced on a tripar te basis (employers, employees and the Government).
Category I: Employees of the Government and business en es are required to pay 4 per cent of their monthly wage and salary (2 per cent by employer, 2 per cent by the employee);
Category II: Herders, unemployed workers and students of the voca onal training centres pay MNT670 per month;
Category III: Children of age 0–18, people without income except for those receiving old-age, disability and survivor pension either from SIGO and/or social welfare department, students (universi es and colleges), parents looking a er their babies un l 2 years old, personnel of military service (defence, border security, police and emergency), and ci zens involved in community based welfare services whose contribu on is en rely funded by the State. Other targeted groups, i.e. older persons, people with disabili es, children with chronic condi on, people aff ected by domes c violence, convicts released from correc onal service, alcohol and drug addicts, homeless, single mother/father family, people aff ected by cureless disease, poor family members, ci zens migrated locally, and parents of children with disabili es, are also required to pay MNT670, which is currently being fully subsidized and fi nanced by the Human Development Fund (HDF);
Category IV: Self-employed who pay 1 per cent of their reference income on the basis of their tax statement to tax authority; and
Category V: Foreign na onals and stateless people who are requested to pay 6 per cent of minimum wage (MNT8,424 monthly).
Health service delivery
Primary level: fi nanced by the State budget: a) 1,588 bagh feldsher (rural); b) 271 soum hospitals and 39 inter-soum hospitals (15–30 beds per soums); and c) 221 family health centres (urban, private prac ces);
Secondary level: 10 per cent co-payment system: 12 district hospitals (200–300 beds) and 17 aimag hospitals (100–500 beds) and three maternity homes;
Ter ary level: 15 per cent co-payment system: Four regional diagnos c and treatment centres (at aimags), three central hospitals, and 11 specialized hospitals.
Popula on covered
In 2013, in total of 2.7617 million people17 (97.8 per cent of the resident popula on) were covered; and the share of popula on with subsidized contribu ons to the total popula on was 57.9 per cent (1.6582 million people). Because of a double coun ng of those insured, SIGO es mates coverage at 90.4 per cent in 2012.
21
Table 6 presents data on the number of people insured under diff erent SHI schemes in Mongolia.
Table 6. Number of insured under the SHI scheme (in thousands)
2006 2007 2008 2009 2010 2011 2012 2013Total resident popula on 2 583.3 2 620.4 2 666.0 2 716.3 2 653.9 2 704.5 2 760.4 2 823.0
Total insured 1 905.7 2 101.7 2 233.7 2 123.0 2 267.6 2 704.5 2 593.6 2 761.7CompulsoryCategory I: Formal sector 456.7 484.8 539.7 546.0 580.8 659.3 742.0Category II: Herders 102.4 98.1 90.8 94.2 101.5 250.1 100.6Category II: Voca onal Students 44.9 48 51.5 75.2 81.9 81.1 87.0
Category IV: Self-Employed 149.3 175.3 198.3 172.4 196.7 370.4 194.0
VoluntaryCategory V: Foreigners 0.1 0.1 0.2 0.2 0.2 0.2 0.3Subsidized popula onCategory III: Children, older people, other vulnerable groups
1 152.5 1 295.5 1 353.2 1 235.0 1 306.5 1 354.0 1 469.7 1 658.2
Percentage of total resident popula on 73.7 80.4 83.8 76.9 85.4 100.0 93.9 97.8
Source: SIGO, Sta s cal Yearbook 2012.
Policy gaps and implementa on issues
Policy gaps
Service Package
Health-care services are divided into two packages: 1) SHI Fund (only 25.1 per cent of the total health expenditures in 2013);18 and 2) Tax funded (state budget) package.Health insurance package does not completely cover all services needed by insured, leading to a situa on where the insured has to pay for the services that are omi ed.
Extra payment The insured s ll pay a signifi cant part of health expenses OOP (41.0 per cent of total health expenditures in 2013)19 and drugs represent the major share of OPP expenses (drugs prescribed by secondary and ter ary health-care levels and specialized clinics are not reimbursed).
Targe ng Government subsidies are not targeted enough. The amount of contribu on for vulnerable groups, herders, self-employed, unemployed and informal economy workers is not properly se led and not risk-adjusted.
Governance Func ons and responsibili es of health insurance stakeholders are fragmented and overlapping.
Ins tu onal capacity
The legal environment for the SHI offi ce to carry out responsibili es as an ac ve purchaser such as assessing needs of the insured, defi ning health-care services, selec ng health-care providers and nego a ng prices and tariff s of health-care services does not exist.
18 SIGO, 2014.19 WHO, 2014.
22
Equality of treatment
There was a signifi cant diff erence of monthly contribu ons between Mongolian na onals (MNT670) and non-na onals (MNT8,424). This distor on might be addressed by the newly adopted Law on Health Insurance, entering into force on 1 July 2015: non-na onal will now contribute at the rate of at least 2 per cent of monthly minimum wage.
Implementa on issues
Coverage The coverage of health insurance dropped from 100 per cent to 94 per cent between 2011 and 2012, and coverage is es mated by SIGO to be even lower due to a double coun ng. The excellent record in SHI coverage in 2011 was achieved through government subsidies provided by the Human Development Fund on the contribu ons of herders, voca onal students and unemployed workers.
Collec on of contribu ons
The current social insurance ins tu onal set up does not eff ec vely support collec on of health insurance contribu ons from the informal sector and herders where people are obliged to pay their contribu ons on a voluntary basis.
Ins tu onal capacity
SHI ac vi es are not ins tu onalized as an autonomously from MPDSP and SIGO.
Benefi ts Free diagnos c services and check-up tes ng benefi t (MNT56,000 per case in addi on to MNT80,000 bonus once a year) is adequate, but the number of benefi ciaries is too low due to insuffi cient service capacity and poor accessibility of public hospitals. Private hospital diagnose centres are not contracted by the SHI Fund.
Quality Insuffi cient investments in public health-care facili es that results in decreasing quality of health-care services and lack of well-equipped infrastructures.
Service quality control
Health-care complaint system does not work properly and grievances are not addressed in a way to sa sfy a customer.
State funded health care
In parallel, there are a number of challenges to be addressed in rela on to health-care services which are solely or par ally fi nanced by the State budget. The State budget is allocated by budget line item rather than programme, as a result budget alloca ons tends to fund only capital and opera on costs of health facili es rather than services. This situa on aff ects the quan ty and quality of services including high impact, low cost interven ons for maternal and child health care. There is no planning methodology with realis c cost available for services paid from the State budget. The absence of proper cos ng and associated fi nancing is a main contributor to low quality of services at public medical and health-care facili es. Moreover, the current state budget alloca on formula for public health-care facili es does not consider distance, poverty rate and environmental factors, and baseline tariff s for calcula on are quite low with li le considera on of infl a on rates in real terms. This is a key factor in persistent dispari es in under-5 child mortality between rural and urban, poor and rich.
Service provision, quality, and adequate health spending, needed to achieve universal health care
The ILO has defi ned fi ve indicators that reveal key defi cits towards universal health coverage, as being one of guarantees of the social protec on fl oor. Defi cit in rights occurs when access to at least essen al health care is not guaranteed by law. In Mongolia, the Law on Health Insurance, 2002 and now amended on 1 January 2015, guarantees that everyone should be covered by the social health insurance. Despite universal social health insurance coverage, as it is nearly the case in Mongolia, defi cits in package of
23
benefi ts, health funding, capaci es and infrastructure, and the quality level of health services and drugs can further hold back the right to health.
Such defi cit in service availability can be indirectly measured by the number of health professionals (physicians, nurses and midwives) per 10,000 popula on. At the same me, quality of service can be measured by proxy indicators such as health spending per capita (excluding OOP payments) and the maternal mortality ra o per 10,000 live births. The fi rst indicator assumes a high correla on between health spending and service quality. In the same way, the overall health service quality is assumed to be refl ected in the quality of obstetric service, especially in reducing the mortality rate of women due to pregnancy-related causes per 10,000 live births. As benchmarks, the number of health professionals per 10,000 popula on and the per capita health spending (excluding OOP payments) can be compared to the respec ve median values of “low vulnerability”, developed economies (for more details on the methodology, see Scheil-Adlung and Bonnet 2011; ILO 2014f, p. 296).
To illustrate, Figure 8 compares the defi cits in access to health services across fi ve dimensions in Mongolia and compared to other groups of countries. The graphic shows that despite rela ve progress in expanding social insurance coverage and quality of health care, as measured by the number of health professional staff and the maternal mortality ra o, the defi cit in health spending is cri cal in Mongolia. Improving health care benefi ts and services may s mulate investments in improved health care infrastructure and staff .
Figure 8. Mul ple dimensions of health coverage in Mongolia compared to other countries (2011)
Source: ILO, World Social Security Report 2014-2015, 2015.
Conclusions and recommenda ons
Social health insurance coverage is mandatory and nearly universal; however eff ec ve access to quality health care remains a challenge for many in rural areas. For instance, a recent drop by 6 per cent in social health insurance coverage (compared to 2011 when the Government subsidized all contribu ons) may indicate customer dissa sfac on with services that results in low incen ve in contribu ng. High
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OOP expenses and ineffi cient services provided by public hospitals discourage voluntary par cipa on in social health insurance and prevent par cipants from accessing adequate health care. The main recommenda on is to improve quality, accessibility and availability of health services.
Table 7 summarizes the recommenda ons gathered during the ABND process. An asterisk (*) indicates a recommenda on to provide new social protec on provisions or increase the coverage of exis ng provisions. The cost of these addi onal provisions or coverage is calculated using the ILO RAP cos ng tool. A number of recommenda ons would require more in-depth feasibility and/or actuarial studies to assess their costs. These recommenda ons are marked with a delta (Δ).
Table 7. Recommenda ons for expanding access to health care adopted by the ABND
Main recommenda ons * H1. Extend eff ec vely SHI coverage to segments of popula on not yet covered, by
fully subsidizing the SHI contribu on for herders, unemployed workers, students of the voca onal training centres and self-employed.
H2. Allow op on for herders to pay SHI contribu ons twice a year adjus ng be er to the seasonality of their income.
H3. Include drugs in high demand in the list of essen al medicine (those reimbursed at 80 per cent) and increase their reimbursement rate.
H4. Reinforce monitoring and inspec on role of the SHI offi ces in ensuring quality of health-care services at aimag and soum level, by crea ng for instance an independent health-care service complaint bureau.H5. Ensure equality of treatment between na onals and non-na onals in terms of contribu on; they should not be considered under a separate category, as to comply with ILO Conven on No. 118.
Δ H6. Gradually expand the benefi t package funded by SHI and reduce OOP expenses.
H7. Introduce smart card registra on system that could be accepted for all levels of hospitals for any type of services accepted by SHI benefi t package.
Addi onal recommenda ons
H8: Introduce good governance and structural changes into SHI administra on and management.
Δ H9: Increase reimbursement rate for drugs; Increase the list of subsidized medicine, those reimbursed at 80.0 per cent based on current list review.
H10: Promote public-private partnerships for the delivery of health-care services.
Δ H11: Finance prosthe c facili es for disabled and older people from the Social welfare fund also through the SHI Fund.
Source: UN/G Social Protec on Working Group, 2015.
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4.2. Children
“Basic income security for children, at least at a na onally defi ned minimum level, providing access to nutri on, educa on, care and any other necessary goods and services”
Mongolia ra fi ed the UN Conven on on the Rights of the Child in 1990 and adopted the Na onal Law on the Protec on of Child Rights in 1996. Over the succeeding decades, Mongolia ra fi ed other UN Conven ons aimed at improving protec on of children. Beside universal and free primary and secondary educa on and free access to health services for children, the main social protec on measure for children is the universal Child Money Programme (CMP) that provides a monthly allowance to all children of age 0–18. In addi on, Mongolia also has a number of social welfare benefi ts targe ng vulnerable children. The Law on Social Insurance, 1994, and the Law on Pension and Benefi ts provided by the Social Insurance Fund, 1994, contain provisions that guarantee income security for survivor children, and the Law on Social Welfare, 2012, prescribes basic guarantees for vulnerable children. Figure 9 illustrates exis ng social protec on programmes in Mongolia.
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Figure 9. Exis ng social protec on programmes for children in Mongolia
Social protection schemes for children
Contributory Social Insurance
Survivor pension
Non-contributory
Social Welfare
Survivor pension
Social welfare benefits
Cash allowance for care givers
Cash allowance for Emergency Assistance and Livelihood support
Other support to children with special needs: cost reimbursement for prosthetic and
ortophedic devices, rehabilitation, education and care
Social welfare services
Institutional care services
Community based care
services
Social development
services
Food stamp programme
Universal Child Money Programme
Education support
Health support
Source: MPDSP, 2014.
Exis ng universal provisions
Universal Child Money Programme (CMP)
The programme, introduced in October 2012, is fi nanced through the HDF, which is accumulated from mineral resource taxes. All children 0–18 years old are eligible for a benefi t of MNT20,000 per month including children under correc onal service and living abroad.
Two parameters of the programme can explain the success of the CMP: fi rst all children are automa cally eligible as soon as they are recorded at civil registra on department of State Registra on General Offi ce (SRGO) (no addi onal procedure is required), second the monthly benefi t is paid directly through automa c bank transfer to eligible families. As a result, by the end of 2013 a total of 960,300 or nearly 100 per cent of children 0–18 years old received benefi ts.
While the UN/G Social Protec on Working Group was conduc ng the ABND, the Parliament was divided on whether the universality of the CMP should be maintain, because of its high cost and the importance of the State budget defi cit registered in September 2014. Par cipants in the na onal dialogue agreed that introducing a means-tested targe ng criteria on the CMP would be detrimental to the educa on, health, nutri on and personal development of many children who would lose their en tlements resul ng in a nega ve impact on recent progress in reducing child poverty.20 Therefore the ABND par cipants recommended maintaining the universality of the CMP, as well as other social programmes such as the kindergarten meal allowances, free boarding schools, subsidies on SHI for all children age 0–18 years, among others.
20 UNICEF: Analysis of the situa on of children in Mongolia, h p://www.unicef.org/mongolia/unicef_sitan_english_fi nal.pdf [accessed 5 May 2015].
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Legal framework
Law on Human Development Fund (13 December 2012), Ar cles 17.1.5; Government resolu on No. 49, 2012; and Government resolu on No. 70, 2012
Target group All children 0–18 years old (even children under correc onal service and living abroad are eligible)
Benefi ts MNT20,000 per monthDelivery CMP delivery process goes in a simple way by using bank card and online banking
systemFinancing Mineral resources taxes accumulated in the HDF. The cost of the programme was
MNT232 billion in 2013
Coverage 960,300 children (2013) (nearly 100.0 per cent of the target popula on)
Exis ng provisions: Contributory social protec on benefi ts for children
Children survivor pension benefi t
Legal framework
Law on Pension and Benefi ts provided by the Social Insurance (17 June 1994), Ar cles 12.1.1–12.1.3 and 12.2.3
Target group Target group: 1) born and adopted child (applicable to a child born a er father’s death) under age 16 (19, if a student) regardless of whether there is another person as legal guardian/carer; 2) grandchild and his/her younger sisters and brothers under age 16 who have no other person legally responsible for maintenance; 3) grandchild and his/her younger sister(s) and brother(s), who were born incapacitated or incapacitated prior a aining age 16 (increased to age 19 on 1 July 2015); and 4) a child who doesn’t get any alimony from his/her parents by judicial decision to be treated like his or her own child in the event of death of his or her step father or step mother
Registra on Both mandatory and voluntary registra onFinancing Employers and workers’ contribu ons to the social insurance Pension Fund:
Mandatory scheme: the contribu on rate is included in the 14 per cent of the payroll salary equally shared between employer and employee that fi nances the three benefi ts of the social insurance Pension Fund.Voluntary scheme: the contribu on rate is part of the 10 per cent of the reference income of the individual going to the social insurance Pension fund. Reference income is declared on a voluntary basis: between minimum wage and ten mes the minimum wage.
Benefi ts The number of dependents is taken into considera on in the determina on of the benefi t rate:
• one dependent: 50 per cent of the amount corresponding to a full pension for old age based on the pensionable earnings of the insured;
• two dependents: 75 per cent; or• three or more dependents: 100 per cent
However, the minimum level of pension must be equal to 50–100 per cent of minimum wage (set at MNT192,000 in 2013) depending on the number of dependents
Coverage 766,815 insured under the mandatory scheme (2013); 147,100 insured under the voluntary scheme (2013).
Benefi ciaries 22,500 survivors in 2013 (data are not disaggregated by age of the survivor)
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Social welfare programmes
According to the Law on Social Welfare, 2012, children are eligible for certain social welfare allowances in the cases described below:
• Children under age 16, who need permanent care are en tled to MNT126,500 per month21 based on non-contributory social welfare allowance;
• A ci zen or a household raising up and taking care of twins (triples and quadruplets) receives the following allowances: for twins, MNT1 million; triples or quadruplets, MNT3 million for each child for one me. The programme covered 4,032 children in 2013;
• A ci zen providing foster care, specifi ed in Ar cle 25.5 of the Law on Family, 1999, to a child-vic m of physiological and physical violence, who is in need for protec on according to Ar cle 74 of the Law on Family. Benefi ts: MNT58,000 per month per child. Training on caretaking and nursing skills is also available for free;
• A ci zen taking care of disabled child under medical control, requiring permanent care. Benefi ts: MNT58,000 per month. Training on caretaking and nursing skills is also available for free;
• Reimbursement for children with disabili es up to age 18, who are not en tled to receive allowance regarding rehabilita on and prosthe c correc on due to industrial accident and occupa onal diseases from the Social Insurance Fund: 100 per cent cost of purchased or custom made special care instruments like orthopaedic tools, wheelchairs and other equipment made in the country, once in three years.
Non-contributory children survivor pension benefi tLegal framework
Law on Social Welfare (19 January 2012), Ar cle 12.1.4
Target group Children below age 18 who lost their breadwinner (one of them or both) who never contribute to the social insurance scheme
Benefi ts MNT126,500 per month from 1 February 2015Financing Social Welfare Fund fi nanced by the government budgetBenefi ciaries 14,072 children22 (2013)
Non-contributory benefi t for single parent headed families
Legal framework
Law on Social Welfare (19 January 2012), Ar cle 12.1.5; Government resolu on No. 81, 2012
Target group Children in a family headed by a single mother age 45 or more (or father age 50 or more) with at least four children below age 18
Benefi ts MNT126,500 per month from 1 February 2015Financing Social Welfare Fund fi nanced by the government budget
Benefi ciaries 52 parents (2013)
Social welfare allowance package for vulnerable children
Legal framework
Law on Social Welfare (19 January 2012), Ar cles 12.1.5, 13, 17.1.1, 17.1.2 and 18.2.3; Law on Social Security of People with Disabili es (8 December 2005), Ar cle 5.1.2 and 5.1.4; Government resolu on No. 153, 2012
21 An amendment to the Law on Social Welfare, 2012 (7 Feb. 2013) specifi ed that this monthly allowance shall be equal to a social welfare pension from 1 Jan. 2014. Therefore, the previous amount of MNT60,000 per month increased to MNT115,000 in 2014 and MNT126,500 in Feb. 2015.
22 MPDSP, Annual Report 2013 (Ulaanbaatar, 2013) p. 42.
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Target A ci zen who adopted or took legal guardianship of double orphan child; children with specifi c needs; children with disabili es; children with chronic condi ons; single mother/father with at least three children under age 14; twins
Benefi t Seven types of allowances: monthly allowance of MNT58,000 to MNT126,500, one me livelihood support of MNT1.2 million yearly allowance for single parents with children of MNT120,000; Reimbursement of prosthe c correc on and rehabilita on cost (100 per cent) for disabled children
Financing Social Welfare Fund fi nanced by the government budgetBenefi ciaries 18,376 children and their caregivers received monthly allowances and 4,032 children
received twin allowance (2013)
Cash allowance for livelihood improvement Legal framework
Presiden al decree No. 42 (29 March 2013); Government resolu on No. 168 (11 May 2013)
Target Members of reindeer herding families living in Taiga (ethnic minority community)
Benefi t Monthly allowance at 50 per cent of the minimum subsistence level (MSL) to a child, at 100 per cent to an adult (star ng from 1 June 2013)
In 2013 the NSO set the MSL between MNT130,500 and MNT149,900 per month depending on the region23
Financing Government budgetBenefi ciaries 339 people (both children and adults ) of 94 families in 2013
Food stamp programmeLegal framework
Law on Social Welfare (19 January 2012) Ar cle 22, Ministerial Order (MOF and MPDSP) No. A/95/2012
Target Children age 18 or below living in poor and very poor households (iden fi ed through the PMT criteria)24
Benefi t MNT5,000 per month in 2014 and MNT6,500 per month from 1 January 2015Financing Social Welfare Fund fi nanced by the government budgetBenefi ciaries 50,371 children in 201325
Educa on support programmesA summary of educa on support programmes in Mongolia is provided in table 8.
Table 8. Programmes aimed at suppor ng educa on of vulnerable children
Programme Free primary and secondary educa onLegal framework Cons tu on of Mongolia (13 January 1992) Art. 16.7; Law on Educa on (6 June
2002) Art. 6.2Target All children 6–18 years old. Benefi t Primary educa on – 5 years; basic educa on – 9 years; and general educa on
–12 yearsCoverage (2013) 481,000 children1 (plus an addi onal 28,700 enrolled in private schools)Programme Kindergarten with free mealLegal framework Law on Educa on (6 June 2002); Law on Preschool Educa on (23 May 2008)
23 The minimum subsistence levels for 2015: MNT160,800–MNT185,400 per month. The highest is for Ulaanbaatar.24 MPDSP es mates that, approxima vely, the lowest 10.0 per cent of households in terms of consump on will be covered in 2015.25 Data provided by MPDSP.
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Target Children 2–5 years oldBenefi t Free meal for state kindergartens Coverage (2013) 174,600 children (71.9 per cent of children 2–5 years old)1
Programme Equivalency Educa on Programme (also called Restore Educa on Programme)Legal framework Law on Educa on (6 June 2002) Art. 3.1.7; Non-formal Educa on Na onal
Programme (Government resolu on No. 116, 1997) Ministerial order No. 362 (9 Oct. 2007)
Target Children over age 10 and adults who never had schooling or dropped out of school
Benefi t Free primary and secondary educa on, with curriculum adapted to needs of target groups
Coverage (2013) 1,800 children dropped out of school in 2013-14 (drop-out rate 0.4 per cent).2 In 2014, 10,020 children covered (3,600 for primary, 4,200 basic and 2,300 for complete secondary educa on)3
Programme E-educa on: “One Laptop per Child” 2008–15Legal framework Government resolu on No. 92, 2008Target Students of grades 2–5, inclusive, of secondary school Benefi t Free laptops Coverage (2013) 15,000 childrenProgramme School dormitoryLegal framework Law on Educa on (6 June 2002) Art. 43.2.1Target Orphans, poor students or students unable to a end school because of the
distance issue (public schools) (for primary and secondary) Benefi t Free dormitory room with mealCoverage (2013) 34,704 children in 2013-14 school year; Dormitory coverage index: 94.8% of the
submi ed requests are fulfi lled; All children in rural and peri-urban areas.Programme School lunch Legal framework Government resolu on No. 194, 2006Target Students grade 1–5 of general secondary schools (both public and private)Benefi t Free lunch Coverage (2013) 239,300 childrenProgramme School textbooks Legal framework Government resolu on No. 192 on Master plan to develop Educa on of
Mongolia for 2006–15 (16 August 2006); Ministerial Order (MECS) No. 131 (2009), Cabinet Mee ng Minute No. 28 (2009)
Target Vulnerable children of general secondary schoolsBenefi t free textbooks for all children in primary educa on; and vulnerable children in
secondary and upper secondary educa onCoverage (2013) 343,700 childrenProgramme Voca onal educa onLegal framework Law on Educa on (3 May 2002) Art. 43.2.2 and Art.43.2.10; Law on Voca onal
Educa on and Training (13 Feb. 2009) Target Children and young people who completed basic educa on Benefi t Free voca onal educa on with monthly s pend of MNT70,000 for all students
(public and private) and free boarding for those in need.Coverage (2013) 42,798 studentsProgramme Free public transporta on Legal framework Law on Educa on (6 June 2002) Art. 43.2.3;Target Students of Colleges and Universi es
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Benefi t Free public transporta on with student card during days of school.Coverage (2013) 103,000 studentsProgramme Na onal student grantLegal framework Law on Financing Higher educa on and Students Social guarantee (9 July 2011),
Art. 8.1; Government resolu on No. 71 (7 Mar. 2014)Target Students enrolled in regular courses of all public and private colleges and
universi es, provided that both applying students and universi es have sa sfi ed the specifi ed criteria.4
Benefi t Monthly grant of MNT70,000 for ten monthsCoverage (2013) 122,000 students
1 Dra budget statement (2015) for Ministry of Educa on, Culture and Science. 2 Mongolian Sta s cal Yearbook 2013, NSO.3 Annual report 2014 of the Na onal Centre for Life-long educa on under the Ministry of Educa on, Culture and Science.4 Un l mid-2014, the scholarship grant was a universal s pend. Following an amendment to the Law on Financing Higher Educa on and Students Social Guarantee in Nov. 2013, Government resolu on No. 71 (7 Mar. 2014) introduced the following eligibility criteria: being a regular course student of an accredited university or college (both public and private); having completed courses of at least 12 credits with at least a grade point average of 2.0 in the preceding semester. The criteria have been further ghtened by Government resolu on Nos. 214 (4 July 2014) and 26 (26 Jan. 2015), requiring a grade point average of at least 3.0.
Source: SIGO, Social Welfare General Offi ce (SWG), MOECS, NAC (Na onal Authority for Children), 2015.
Child social protec on reforms currently being discussed
The following amendments concerning social protec on of children are now being discussed but had not yet been proposed at the me of the ABND. For this reason the recommenda ons for achieving the social protec on fl oor guarantee for children do not refl ect these new developments.
1. MPDSP developed a new dra law on providing benefi ts and assistance to mothers. The dra law, which has been endorsed by the Cabinet, provides: a) monthly cash benefi t and monthly food support to pregnant women from the fi h month of pregnancy to childbirth; b) monthly cash benefi t to a mother who is looking a er her child up to age 2 (in case of twins age 3 and the amount of benefi t will be 50 per cent higher for third baby); c) one- me cash allowance to a mother of twins under age 4; d) subsidized pension insurance coverage (at 50 per cent of monthly minimum wage) for voluntary insured mothers/fathers who are looking a er their biological or adopted child up to the age 2 (in case of twins age 3); and e) 100 per cent of personal income tax refund for a mother with four or more children 2–18 years old. The level/amount of benefi ts, assistance and support will be decided by the Government.
2. Parliament is discussing the dra law on child care. The dra law is intended to target children 2–5 years old who are out of kindergartens. Private child care centres enrolling up to 20 children and mee ng the standards specifi ed by the law can are eligible for subsidies for every child enrolled, not exceeding the level of public kindergartens. Because opera onal and quality standards will be set at a rela vely low level, it is expected that over 6,000 centres would be established, thus resolving the issue of the lack of kindergartens.
3. According to the new policy on Educa on for 2014–24, adopted by Parliament Resolu on No. 12 dated 29 January 2015 (Provision 6.7), a principle of sharing kindergarten meal costs with parents and guardians will be applied.
4. Child and family development centres will be built in Bayangol and Bayanzurkh districts of Ulaanbaatar city and Arkhangai aimag, Khairkhan soum in 2015 funded by the HDF.
Social protec on programmes for children and along with informa on on coverage rates for 2013 are provided in table 9.
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Table 9. Summary of social protec on programmes for children
Scheme Coverage (2013)
Universal CMP 960,300 children, nearly 100 per cent of all children age 0–18
Contributory survivor pension benefi t 22,500 children
Non-contributory survivor pension benefi t 14,072 children
Single parent headed families with children 52 families
Non-contributory social welfare allowance package
18,376 children and their caregivers received monthly allowances and 4,032 children received twin allowance
Kindergarten with free meal 193,672 children or 79.9 per cent of children age 2–6
Free educa on, primary and secondary 498,600 children
Restore educa on programme 10,020 childrenE-educa on “One laptop per child 2008–15” 15,000 childrenSchool dormitory Dormitory coverage index is 94.8School lunch 239,300 childrenSchool textbooks 343, 700 childrenFree voca onal educa on 42,798 studentsFree public transporta on 103,000 students of colleges and universi esNa onal student grant 122,000 students of colleges and universi es Food coupon 50,371 childrenSource: SIGO, SWG, MOECS, NSO, NAC.
Policy gaps and implementa on issues
Policy gaps
CMP The CMP is embedded in the Human Development Fund Law, 2012. However the con nuity of its features, notably its universality which is a fundamental principle of the social protec on fl oor, are not safeguarded by law and o en depends on poli cal decisions. The level of benefi t is s ll too low for allowing to cover all expenses related to school a endance, such as uniform and textbooks. There is no automa c indexa on to the cost of living of the level of the CMP allowance.
Survivor benefi ts
There is no automa c indexa on to the cost of living of the level of social insurance survivor pension benefi ts; the level is rather adjusted on an ad-hoc decision.
Preschool accessibility
Enrolment to kindergartens has increased; however such increments were not no ceable among children from low-income households, those who presumably would benefi t the most from kindergarten educa on and meal provided free of cost.
Nutri on quality
Quality of kindergarten meals is low.
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Social service accessibility
Despite a number of social welfare programmes, children are facing barriers, mostly distances, to access basic social services, including for health and educa on. Quality of these services s ll need to be improved in rural areas, notably for children with special needs and children with disabili es. The defi ni on of children with disabili es does not allow for proper inclusion of all children with special needs. Therefore, many of them are s ll excluded from services and benefi ts provided by the social protec on.Children enrolled in monasteries’ educa onal system do not follow the formal educa on curriculum.Water sanita on and hygiene and adequate sanitary installa on for children is also considered an issue. Employment policies should take more into account needs of workers with family responsibili es.
Parenthood Most parents lack informa on and capacity to properly access social protec on services for their children. Some parents s ll ask their children to help at work, notably in husbandry ac vi es. There is no proper legisla on that will penalize the parents and protect the children in situa on of negligence of parental obliga ons.
Implementa on issuesCMP The list of required suppor ng documents (such as birth cer fi ca on and parent
iden fi ca on documents) is a major obstacle in accessing social services in rural areas.
Quality of services
The standards of quality in social services and infrastructures delivery are well determined; however implementa on and enforcement of these standards are weak.
Quality of school dormitory services is poor.
The number of social workers and care givers, in par cular for psychological care is insuffi cient.There is no facili es for children during school holidays.
Targe ng There are s ll some errors in iden fying households and persons most in need who should be benefi ng from social welfare services.
Informa on There is no coherent informa on system to monitor delivery of social protec on services and benefi ciaries.
Conclusions and recommenda ons
General educa on (up to upper secondary or 12 years of educa on) and health care are provided free of charge to all children. Eff ec ve access to educa on is guaranteed by suffi cient and free-of-charge boarding schools. The CMP, universal since 2012, ensures that all children age 0–18 years receive a minimum income guarantee. The main recommenda ons of the child guarantee are to maintain subsidies on social health insurance contribu ons for all children and the universality of the child allowance, rather than introducing a means-tested eligibility criteria that would not bring signifi cant saving to jus fy excluding the large majority of children, including those poor due to exclusion errors a cost comparison is available in the second part of the report).. Further recommenda ons include safeguarding the universality of the CMP through legisla on; indexing the allowance to the cost of living; increasing the quality of nutri on in preschools; and improving access to quality social services by promo ng social work especially among children with special needs.
Table 10 summarizes the recommenda ons gathered during the na onal dialogue process. Items marked with an asterisk (*) indicate a recommenda on to provide new social protec on provisions or increase
34
of coverage of exis ng provisions. The cost of these addi onal provisions or coverage is calculated using the ILO RAP cos ng tool. A number of recommenda ons would require more in-depth feasibility and/or actuarial studies to assess their costs. These recommenda ons are marked with a delta (Δ) in table 10.
Table 10. Recommenda ons for improving the quality of social protec on for all children adopted by the ABND
Main recommenda ons* C1. Keep the CMP amount as it is, but introduce an automa c indexa on to the consumer price
index. Safeguard the universality of the CMP with a legisla on.
Δ C2. Improve social inclusion objec ves of programmes for children with disabili es, for instance such as renova on of facili es to ensure access to social services in par cular kindergarten and school educa on, and expand alterna ve preschool programmes for children with special needs.
C3. Introduce supervisory mechanisms for be er safety and quality of meals in kindergarten and schools.
* C4. Improve the quality of nutri on in preschools/kindergartens for half- and full-board children. A new government policy recommends to limit subsidies on the meal allowance to 50 per cent only.
C5. Increase the number of kindergartens to ensure that the remaining children (likely among the vulnerable groups) can also access to these educa on services.
Addi onal recommenda ons
* C6: Increase the level of CMP benefi ts for young children (however, the UN/G Social Protec on Working Group agreed not to include this recommenda on in the list of scenarios to be es mated, for the moment focusing advocacy eff orts on preserving the universality of the CMP).
C7: Ease qualifying condi ons for benefi ts targe ng single mothers or fathers with several children.
Δ C8: Expand services targe ng children with chronic illness condi ons.
Δ C9: For youth of working age (above age 16), establish programmes that would facilitate the transi on school to work. (See recommenda ons under Guarantee 3.)
C10: Provide decent jobs to parents whose children are involved in worst forms of child labour.
C11: Improve enabling environments for guaranteeing the right to educa on and personal development of children of herders’ families.
Source: UN/G Social Protec on Working Group, 2014.
35
4.3. Working age popula on
“Basic income security, at least at a na onally defi ned minimum level, for people in ac ve age who are unable to earn suffi cient income, in par cular in cases of sickness, unemployment, maternity and disability”
Working age social protec on consists of contributory and non-contributory benefi t schemes and ac ve labour market employment programmes. Figure 10 depicts the exis ng social protec on and employment promo on programmes for people of working age.
Figure 10. Exis ng social protec on and employment promo on programmes for people of working age in Mongolia
Source: MPDPS, MOL.
36
Exis ng provisions: Contributory social protec on schemes for the working age
Working injury and occupa onal disease insurance
The working injury and occupa onal disease insurance is one of fi ve branches of the Social insurance system and it is administered by the Social Insurance General Offi ce (SIGO).
Legal framework
Law on Social Insurance (31 May 1994), Law on Pension, Benefi ts and Payments provided by Social Insurance Fund against Work Injury and Occupa onal Disease (7 June 1994)
Target group Workers (Mongolians and foreigners or stateless people) employed in Mongolian business en es, NGOs and other organiza ons (Art 4.2.1); workers (Mongolians and foreigners or stateless people) employed in foreign business en es, NGOs, project management units and Interna onal organiza ons in Mongolian territory (Ar cle 4.2.2); civil servants and public workers (Ar cle 4.2.3); labour contracted Mongolian workers deployed abroad (Ar cle 4.2.4); individuals other than the ones specifi ed in Ar cle 4.2 who do not work in formal economy and unemployed workers.
Registra on Mandatory and voluntary
Financing Employers contribu on and individual voluntary contributors to Working Injury, Occupa onal Disease Insurance Fund:
Mandatory scheme: contribu on rate is borne solely by employers at the level of 1 per cent, 2 per cent and 3 per cent (depending on occupa onal hardship) of the payroll salary (between minimum wage and 10 mes the minimum wage).
Voluntary scheme: contribu on rate is 1 per cent of the reference income, paid by insured only. Reference income is declared on a voluntary basis and ranges from the minimum wage (set at MNT192,000 in 2013) to 10 mes of minimum wage.
Benefi ts Disability and survivor pension, sickness benefi ts, compensa on for rehabilita ons: prosthe c facili es, sanatorium treatment caused by a working accident and occupa onal disease.
Coverage Insured under the mandatory scheme: 766,815 insured under the voluntary scheme: 147,100 in 2013
In 2013, 5,800 people received a disability pension, 600 received a survivor pension while 1,000 received sickness benefi ts for temporary loss of working capacity.
Maternity, sickness and funeral benefi ts Contracted employment and public service workers (on a mandatory basis), self-employed, herders and unemployed workers (on a voluntary basis) contribute to the Social Insurance Fund for maternity and sickness benefi ts, and funeral grant. These three benefi ts are grouped under the Allowance Fund. Maternity and sickness benefi ts, as well as funeral grants are administered and delivered through Social Insurance Offi ces.
Legal framework
Law on Social Insurance (31 May 1994,) Ar cles 4.2 and 4.3; Law on Pension and Benefi ts provided by the Social Insurance Fund (7 June 1994)
Target group Ar cle 4.2 (contracted employees and civil service workers), Ar cle 4.3 (informal sector and unemployed workers, and herders)
Registra on Mandatory and voluntary
Financing Employer and workers’ contribu on to the social insurance Allowance Fund:Mandatory scheme: contribu on rate is of 1.6 per cent of wages equally shared between workers and employers. Voluntary scheme: contribu on rate is 1 per cent of the reference income (reference income shall not be below minimum wage).
37
Eligibility Maternity benefi t: At least 12 months of contribu ons, of which six con nuous prior to maternity leave.Sickness benefi t and Funeral grant: At least three months of contribu on prior to a sickness leave due to ordinary disease and non-occupa onal accidents.
Benefi ts Maternity benefi t: the replacement rate is 100 per cent of last 12 month average wage for a period of four months for mandatory insured mothers (Ar cle 4.2); and 70 per cent of last 12 month average income for a period of four months for voluntary insured mothers (Ar cle 4.3).
Sickness benefi t: The insured period is taken into considera on in the determina on of the benefi t rate, which is applied on the average past three months wages:
• up to 5 years old: 50 per cent;• 5–14 years old: 55 per cent; • 15 years and above: 75 per cent.
The maximum 66 working days in case of ordinary disease in a year. This dura on can be extended to 132 days in a year in case of extraordinary disease (both Ar cles 4.2 and 4.3).For example, in case the insured person has paid contribu ons for fi ve con nuous years based on the minimum wage, the benefi t will amount MNT314,160 (US$185) for a maximum of 66 days of sickness.Funeral grant: MNT620,000 (both Ar cles 4.2 and 4.3).
Coverage Insured under the mandatory scheme: 766,815 insured under the voluntary scheme: 147,100 in 2013.In 2013, a total of 45,700 mothers received maternity benefi ts and a total of 104,400 workers received benefi ts under the sickness insurance scheme. Funeral grants were paid to 12,400 people in 2013.
Unemployment insuranceThe mandatory social insurance scheme also provides support in case of loss of employment for formal employees in the private and public sectors. The package of voluntary social insurance scheme provided for herders, self-employed and informal economy workers does not include unemployment benefi ts. The unemployment benefi ts are calculated, approved and delivered through Social Insurance Offi ces. 26
Legal framework
Law on Social Insurance (31 May 1994), Ar cle 4.2; Law on Unemployment Benefi ts Provided by the Social Insurance Fund (5 July 1994)
Target group Ar cle 4.2 (contracted employees and civil service employees)
Registra on Mandatory
Financing Employers and employees’ contribu ons to the social insurance Unemployment Insurance Fund: The contribu on rate is of 0.4 per cent of wages equally shared between workers and employers.
Eligibility A worker must have a minimum of 24 months of insurable employment including con nuous employment in the last nine months to qualify for unemployment insurance benefi ts. From July 2015, in a case of a subsequent claim, the qualifying period will be increased from 6 months to 12 months, the other eligibility criteria remaining the same (Law amendment of 30 January 2015).
26 For more details see also: J. Carter, M. Bedard and C.P. Bista: A compara ve review of unemployment and employment insurance systems in Asia and Worldwide (Bangkok, ILO, 2013).
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Benefi ts Unemployment insurance benefi ts can last 76 days, irrespec ve of the dura on of insured employment. The insured period is taken into considera on in the determina on of the benefi t rate, which is applied on the average past three wages:
• up to 5 years of insured employment: 45 per cent;
• 5 to 10 years: 50 per cent;
• 10 to 15 years: 60 per cent;
• 15 and above: 70 per cent.
The minimum unemployment benefi t shall not be less than 75 per cent of the minimum wage established by the Na onal Tripar te Commi ee on Labour and Social Consensus at MNT192,000 per month according to the last update in April 2013.
Under the current law, if a worker terminates the employment contract voluntarily or the employment rela onship has been terminated by the employer due to serious and repeated breaches of the labour code, 36 days of benefi ts are deducted from due benefi ts. From 1 July 2015, however, with the new legal amendment adopted 30 January 2015, this provision will be removed.
Coverage Insured: 766,815 in 2013. In 2013, 15,800 employees received unemployment insurance benefi ts.
Disability and survivor pension The disability and survivor pensions are part of the three benefi ts provided by the Pension Fund of the Social Insurance System, together with the old-age pension. The pension benefi ts are calculated and administered by Social Insurance offi ces at aimag levels, and delivered at soum levels.
Legal frameworkLaw on Social Insurance (31 May 1994), Ar cles 4.2 and 4.3; Law on Pension and Benefi ts Provided by the Social Insurance Fund (7 June 1994)
Target group Ar cle 4.2 (contracted employees and public service workers), Ar cle 4.3 (informal sector and unemployed workers, and herders)
Registra on Both mandatory and voluntary
Financing Employers and workers’ contribu ons to the social insurance Pension Fund:Mandatory scheme: the contribu on rate is included in the 14 per cent of the payroll salary equally shared between employer and employee that fi nances the three benefi ts of the social insurance pension Fund.
Voluntary scheme: the contribu on rate is part of the 10 per cent of the reference income of the insured going to the social insurance pension fund. Reference income is declared on a voluntary basis: between minimum wage and 10 mes the minimum wage.
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Benefi ts Disability pension: in case of loss of capacity to a level of at least 50 per cent, the benefi t rate is 45 per cent of his/her reference wage. A er 20 years of service, the benefi t rate increases by 1.5 per cent for each addi onal year. A person is eligible for a par al pension if s/he contributed for a period of three years out of fi ve immediately preceding the date of commencement of disability. In any circumstances, both fully and par al disability pensions must not be lower than the minimum social insurance old-age pension (set at MNT195,000 for a par al pension or MNT230,000 for a full pension). Survivor pension: the number of dependents is taken into considera on in the determina on of the benefi t rate:
• one dependent: 50 per cent of the amount corresponding to a full pension for old age based on the pensionable earnings of the insured;
• two dependent: 75 per cent;
• three or more dependent: 100 per cent.
However the minimum level of pension must be equal to 50–100 per cent of minimum wage (set at MNT192,000 in 2013) depending on the number of dependents.
Eligibility Disability pension: An insured person who has lost his/her capacity for work permanently or for a long dura on due to a non-occupa onal disease or accident, provided that he/ she has paid contribu ons for not less than 20 years, or for a period of three years out of fi ve, immediately preceding the date of commencement of invalidity.Survivor pension: Family dependents (spouse and children below age 16) where an insured person, who has paid contribu ons for not less than 20 years, or for a period of three years out of fi ve before the death, dies due to a non-occupa onal disease or accident.
Coverage 766,815 insured under the mandatory scheme; 147,100 insured under the voluntary scheme in 2013.
Benefi ciaries 22,500 survivors in 2013 (no disaggregated fi gures by age).
Military service scheme
Legal framework Law on Pension and Benefi ts of Military Service Personnel (13 June 1994), Ar cle 4.1
Target group Cadet, soldiers, sergeants, fi rst-sergeants, offi cers, commissaries, generals of armed forces, offi cials of Defence, Police, Border Security, Correc onal Service, Intelligence, Emergency Service and Criminali es.
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Benefi ts The scheme include the following benefi ts delivered through Social Insurance offi ces: old-age pension (see more details under guarantee 4), disability pension, survivor pension, maternity benefi t, sickness benefi t and funeral grant.Maternity benefi ts: 100 per cent of last 12 months average wage for a period of four months.Sickness benefi ts: The benefi ts are calculated according to the years of services as follows:
• up to fi ve years of services: 50 per cent of the reference wage;• from 5 to 14 years: 60 per cent; • 15 years and above: 80 per cent.
Funeral grant: MNT620,000 in 2014. Disability pension: the level of benefi ts varies from 10 to 60 per cent of the average of the fi ve con nuous years’ salaries out of the past 20 years of service depending on the level of invalidity. Survivor pension: The calcula on of the level of survivor pension takes into considera on the number of dependents, as a percentage of the average of the fi ve con nuous years’ salaries out of the past 20 years of service. Dependents can be spouse and/or children:
• 3 or more dependents: 100 per cent of past earnings; • 2 dependents: 75 per cent; and• 1 dependent: 50 per cent and plus 10–15 per cent complementary benefi t.
Eligibility Men military offi cial should have completed at least 25 years of service and women 20 years of service.
Financing Government budget A comparison of the provisions of the 1994 and 1999 laws on disability and survivor pensions is provided in table 11.
Table 11. Comparison between the provisions of laws adopted in 1994 and 1999 for disability and survivor pensions
Defi ned benefi ts (DB) scheme (for ci zens born before 1960)
No onal defi ned contribu on (NDC) scheme (for ci zens born a er 1960)
Disability pensionBenefi t rate Invalidity of 75 per cent or more = 45 per
cent of income reference, increased by 1.5 per cent of wages for every addi onal year.
Invalidity of 50 per cent or less = pension calculated at propor onal rate of the wages as 45 per cent or more.
Both full and par al disability pension shall not be less than the old-age minimum pension.
If old-age pension is below disability pension, the person will be en tled to disability pension at re rement age.
If disability is not the result of an occupa onal accident or disease, the person will be eligible for a social pension provided by the Social Welfare Agency.
Total invalidity = monthly average wage in the last three years* 60 per centPar al invalidity = (monthly average wage in the last three years*60 per cent)
* percentage of capacity for work lost;
Minimum disability pension must be equal to minimum old-age pension.
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Qualifying condi ons
Invalidity of not less than 50 per cent due to a non-occupa onal disease or accident with contribu ons for not less than 20 years of service or at least three years out of fi ve immediately preceding the date of invalidity commencement.
Survivors pensionBenefi t rate Three or more dependents = 100 per cent of
the amount corresponding to a full pension for old age based on the pensionable earnings of the insured, Two dependents =75 per cent, and one dependent = 50 per cent.Minimum survivor pension must be equal to 50–100 per cent of the minimum wage (set at MNT192,000 in 2013) depending on the number of dependents.
40 per cent monthly average wage in the last three years for one dependent, increased by 10 per cent for each addi onal family member. Pension should not exceed 60 per cent monthly average wage of the last three years. Minimum pension must be equal to minimum old-age pension
Qualifying condi ons
Not less than 20 years insured service, or three years out of fi ve, immediately preceding the death of the breadwinner due to non-occupa onal disease or accident.
Exis ng provisions: Non-contributory social protec on schemes for the working age
The following benefi ts are delivered through Social Welfare Offi ces.
Social welfare disability pension benefi t
Legal framework
Law on Social Welfare (19 January 2012) Ar cles 12.1.3 and 12.1.2; Government resolu on No. 81, 2012
Target group Ci zens age 16 and older who lost his/her working capacity equivalent to at least 50 per cent and more and dwarf individuals age 16 and older
Eligibility Being not en tled to receive pension under the social insurance legisla on (never contributed (or less than three years) to the social insurance scheme).
Benefi ts The level of disability pension is fi xed on ad-hoc basis, and not indexed to the cost of living. On 1 February 2015, the amount was increased from MNT115,000 to MNT126,500 per month.
Financing Social Welfare Fund fi nanced by the government budget.
Coverage 44,209 people with disabili es and 164 dwarf people in 2013.27
Table 12 provides a summary of other social welfare cash supports for the working age popula on.
Table 12. Other social welfare cash supports (2013)
Support Legal framework Target/eligibility Benefi t Coverage
Cash allowance for poor
Law on Social Welfare (19 January 2012), Art. 13.3
A ci zen-member of household selected from households with living standard lower than a specifi ed threshold who are registered in a central database of households (proxy-means tested database)
MNT48,000 per month
Proxy-means tes ng programme, not yet implemented
27 Annual Report of MPDSP for 2013.
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Emergency assistance
Law on Social Welfare (19 Jan. 2012), Art. 13.5.1
Homeless or whose home became unsuitable for living or lost livelihood due to sudden accident, disaster-dzuds (harsh winters) or other unforeseen reasons
MNT1,200,000 one me
815 people of 602 households
Livelihood support
Law on Social Welfare (19 Jan. 2012), Ar cles 13.5.2–13.5.5
Ci zen, age 18–24 who became a double orphan before he/she turned 18; homeless ci zen released from prison; homeless and wandering ci zen or household
MNT1,200,000 one me. 403 people
Allowance and assistance
Law on Social Security of People with Disability (8 Dec. 2005), Ar cles 5.1.3 and 5.1.4; Government resolu on No. 153, 2012
People with disabili es
15 types of allowances, reimbursements and assistance services
37,300 people1
Allowance for permanent care
Law on Social Welfare (19 Jan. 2012), Art. 13.2.4
A ci zen taking care of elder or disabled person under medical control, requiring permanent care.
MNT48,000 per month (the amount was increased to MNT58,000 from 1 Feb. 2015) 1 Feb. 2015
16,800 people with disabili es (plus 16,800 older persons)2
Allowance for permanent care-givers
Law on Social Welfare (19 Jan. 2012), Art. 13.2.3
A ci zen taking care of single elder or disabled person in their family, who has no children or rela ves to take care of him\her;
MNT48,000 per month (the amount was increased to MNT58,000 from 1 Feb. 2015)
239 people with disabili es and 154 older people
Food and nutri on support
Law on Social Welfare (19 Jan. 2012), Art. 22
A member of poor household as requiring necessary food supply; homeless people
Food coupon – MNT10,000 for every month in 2014 (MNT13,000 per month from 1 Jan. 2015)
47,548 adults of 97,919 total benefi ciaries
Cash allowance for livelihood improve-ment(star ng 1 June 2013)
Presiden al decree No. 42 (29 Mar. 2013); Government resolu on No. 168 (11 May 2013)
Members of Reindeer herding families living in Taiga (ethnic minority)
Monthly allowance, 50 per cent of minimum subsistence level (MSL) for a child, 100 per cent for an adult3
339 people of 94 families
1Mongolian Sta s cal Yearbook 2013, NSO. 2 Annual report of MPDSP for 2013. 3 MSL for 2015: MNT160,800–MNT185,400 per month. The highest is for Ulaanbaatar.Source: SWGO, 2015.
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Other in-kind social welfare: Community-based service for the working age
Target group People with disabili es; vic ms of violence; ci zens released from a prison; alcohol and drug addicted ci zens; ci zens with incurable disease; Homeless and wandering households and ci zens; migrated ci zens or ci zen-members of poor households; Single mothers/fathers.
Services Support to homeless ci zens and their family members in socializing, civil registra on, and accommoda on in a temporary shelter; Socialize ci zens and households requiring social welfare assistance, to help form a community group, implement income genera ng projects and provide life skills training; Counselling; Rehabilita on; Temporary accommoda on and care; Day care service; Home based care and service.
Financing Local government budget (from 2013)Funding process
Service costs es mated by the Social welfare unit at the aimag level, district and capital city on the basis of proposal issued by Livelihood Support Council of respec ve soum and khoroo and be submi ed to the Local Governor Offi ce.
Coverage 8,700 people in 2014
Ac ve labour market programmes Ac ve labour market measures comprise programmes with a twofold objec ve: 1) enhancing employability; and 2) promo ng employment. All programmes, as well as func ons and services of employment services, are designed and funded by the Ministry of Labour (MOL) and implemented by the local government at aimag and soum levels. From 2012 to 2014, MOL implemented two programmes under the fi rst category and eight under the second, as described herea er.
In February 2015, the Na onal Employment Council (tripar te body) reviewed the employment promo on programmes (EPP) and adopted the fi ve following programmes:
44
1. support to self-employed people to start coopera ves or partnerships;2. employment skills and reten on of jobs;3. promo on of employment of people with disabili es;4. promo on of herders’ employment; and 5. promo on of employment among youth, graduates of voca onal schools and training. For the year 2015, MNT80.3 billion have been allocated to these programmes through the Employment Promo on Fund.The report describes the ten EPPs that were been reviewed during the na onal dialogue from December 2013 to September 2014.
Enhancing employability
Public employment services provide support for occupa onal and voca onal orienta on, career and job counselling and analysis and collec on of labour market informa on, including supply and demand for jobs and skills. In addi on, employment services are also accredited to deliver their own voca onal training programmes. Current programmes and ac vi es are outlined below.
Programme on prepara on of professional workers28
Key ac vity Registra on of trainees (a four-way contract is established between the unemployed person, Government, training provider and employer); voca onal training at voca onal training centres and produc on centres, 20 per cent of training shall cover the theory and 80 per cent shall be the prac cal appliance of theore cal knowledge; and evalua on and assessment of graduates and job placements
Benefi t Trainee is provided with:• a monthly fellowship of MNT190,000; • monthly accommoda on cost of MNT75,000;• working cloths of MNT60,000.Addi onal cost for a prac cal session MNT312,000 per a mentor (mentor and trainee ra o 1:15) for 3 months.Employer that provided a job place receives MNT65,000 per trainee. In total MNT7.215 billion spent in 2014.
Coverage 4,182 people trained; 3,085 jobs created, of which 2,695 regular and 390 temporary
Programmes on employment prepara onKey ac vity Counselling and orienta on: review of career, prepara on for interviews
Benefi t Reimbursement of costs for obtaining necessary documents and medical check-up.
Maximum of reimbursement cost per person is fi xed by Minister of Labour. In total MNT144.2 million spent in 2014
Coverage 5,695 people benefi ed
Key ac vity Employment training
Cost MNT1.6182 billion spent in 2014Coverage 6,399 people
Key ac vity Measures to support employers; reimbursement of prac cal training cost of up to three months per full me worker trained through on job training
28 2014 data provided by Ministry of Labour.
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Cost 12 mes the minimum wage for each newly created job that qualifi es for benefi ts under the programme. The employee must have worked for more than 12 months.
Salary support:• One year’s salary to an employer if the employee reached working age while in the
children’s welfare campus or was released from a prison and was placed in a full- me job through on-the-job training. The employee must have worked for more than one year.
• 50 per cent of one year’s salary to an employer if the employee reached working age while in the children’s welfare campus or was released from prison and placed in a full- me job through on-the-job training. The employee must have worked for 8–12 months.
In total MNT1.1491 billion spent in 2014Coverage 487 employers
Employment promo on programmesSince January 2012, the MOL has been implemen ng a number of employment promo on programmes, targe ng: i) vulnerable workers such as people with disabili es, self-employed, herders, coopera ves and those star ng their own-business; ii) employers; and iii) inhabited regions of Mongolia.
Eight employment promo on programmes have been implemented in 2014.
Employment promo on programme for workers over 40 and seniors Key ac vity Project on plan ng potato, vegetables and fruitsCost MNT527.1 million spent in 2014Coverage 1,286 peopleKey ac vity Projects on group work to protect and rehabilitate the environment and prevent
injuries and accidentsCost A group with 1–3 people, dura on 4 months per group, incen ve is MNT200,000 per
month per group; MNT539.6 million spent in 2014Coverage 2,097 peopleKey ac vity Project on regula ng traffi c crosses around primary and secondary schools
Cost Only in a capital city Ulaanbaatar, a group with 1–3 people, dura on is not more than eight months, incen ve MNT200,000 per month per group; MNT84.3 million spent in 2014
Coverage 458 people
Employment promo on programme for herders Key ac vity Restocking of animals for young herdersCost MNT5 million, one me per household; 50 per cent of the loan shall be paid back within
three years; MNT2.906 billion spent in 2014Coverage 1,492 young herdersKey ac vity Financial Support to herder-employers
Herder-employer who hire proba oner-herders with few animals or those herders who lost their animals because of natural disasters; employers must pay at least for 12 months not less than the na onal minimum wage and must teach them herding techniques; employers receive up to ten livestock annually
Cost Up to MNT1 million grant, for one me; MNT40 million spent in 2014
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Coverage 40 herder-employersKey ac vity Training and study tours, fair exhibi onsCost MNT442.4 million spent in 2014Coverage 1,101 herders
Programme for entrepreneur development Key ac vity Providing fi nancial support to entrepreneurs as follows:
• ci zens over age 40• ci zens that have diffi cul es of fi nding a job• self-employers and ci zens that start a business or move from the informal sector
to formalCost MNT1 million per person; MNT1.5649 billion spent in 2014Coverage 1,417 peopleKey ac vity Providing business and incuba on servicesCost MNT1.0526 billion spent in 2014Coverage 8,658 people
Employment promo on programme for people with disabili es (PWD) Key ac vity Skills trainingsCost MNT83.3 million spent in 2014Coverage 1,022 peopleKey ac vity Financial support to people with disabili es for their entrepreneur developmentCost Up to MNT1 million per posi on; in total MNT5 million will be provided to PWDs based
on a business proposal compe on bid; MNT1.2443 billion spent in 2014Coverage 1,455 peopleKey ac vity Support to employers that provide job places for PWD (1)Cost Incen ve: One me incen ve equal to 12 mes the minimum wage for each person with
disabili es employed for more than 12 monthsFinancial support: MNT5 million per job place (up to MNT50 million) if more than eight permanent posi ons are created especially for the skills and features of PWDs, based on a compe ve bid for the project; MNT97.8 million spent in 2014
Coverage 45 employers provided job places for 129 PWDKey ac vity Support to employers that provide job places for PWD (2)Cost Financial support: MNT5 million per job place (up to MNT50 million) if more than eight
permanent posi ons are created specially designed for skills and features of PWDs, based on a compe ve bid for the project; MNT300 million spent in 2014
Coverage 100 employers
Youth employment promo on programmeKey ac vity “Soum youth” project with an objec ve to provide public services to ci zens in remote
soums and towns and to contribute into ac vi es for local development.Cost One me incen ve of MNT200,000 shall be paid to each par cipant, if s/he worked for
more than 21 working days; MNT403.6 million spent in 2014Coverage 1,978 peopleKey ac vity “Start of work” project suppor ng youth par cipa on in ac vi es such as winter
prepara on, building model winter shelter, delivering new baby animal, making hay and cropping ac vi es by fi nancing of local authori es and ci zens.
Cost One me incen ve of MNT200,000 shall be paid to each par cipant, if s/he worked for more than 21 working days; MNT1.4857 billion spent in 2014
47
Coverage 7,311 people
Key ac vity Support to youth income genera on through summer works in mining, road building, constric on and other sectors during students’ summer vaca on.
Cost One me incen ve of MNT200,000 shall be paid to each member of a team with 10–15 members, if s/he worked in the abovemen oned economic sectors for more than 21 working days; MNT198.8 million spent in 2014
Coverage 914 people
“Inhabited Mongolia” programme Key ac vity 10 working days paid to employees of local public work programmes
Cost MNT14,000 per person per day as salary and a lump-sum of MNT10,000 for working equipment per person; MNT2.2516 billion spent in 2014
Coverage 17,299 people
Key ac vity 10 working days paid to employees of green work provided by local government
Cost MNT14,000 per person per day as salary and MNT10,000 lump-sum per person for working equipment; MNT2.0803 billion spent in 2014
Coverage 8,030 people
Senior specialist’s consulta on service project Key ac vity Consul ng services on necessary fi eld of work to aimag, soum, district and sub-district
by elder people’s team (a team at least of three members, at least three months service and 56 working hour per month)
Cost MNT1 million per team; MNT984.7 million spent in 2014Coverage 3,030 peopleKey ac vity Consul ng service, based on a contract, by elder people through NGO (implemented
by Employment Service Center in Ulaanbataar only, based on project bid, 70 per cent of budget shall be paid in advance and 30 per cent upon accomplished ac vi es)
Cost No dataCoverage 272 people
Loans from SME promo on fund, employment promo on fund and soum development fund Key ac vity Small and medium enterprises loans; Employment promo on loans; Loans from Soum
developmentCost According to bid regula ons
Coverage 440 people small and medium enterprises loans; 5,729 people received employment promo on loans, MNT17.4 billion spent, 12,915 jobs created, of which 10,193 regular and 2,722 temporary jobs; 3,386 people received loans from Soum development, MNT5.8 billion spent
48
Social protec on programmes for the working age group are summarized in table 13.
Table 13. Summary of social protec on programmes for the working age group
Type of scheme Benefi ts Coverage (by the end of 2014)
Social insurance schemesWorking Injury and Occupa onal Disease Insurance
Disability pension, Survivor pension, Sickness benefi ts, Compensa on for rehabilita ons: prosthe cs facili es, sanatorium treatment
71.6 per cent of labour force
Allowance Insurance
Maternity benefi t, Sickness benefi tand Funeral Grant
71.6 per cent of labour force
Unemployment Insurance
Unemployment benefi ts 766,815 people or 60.1 per cent of total labour force
Pension Insurance
Disability pension, Survivor pension 71.6 per cent of labour force
Military benefi t scheme
Disability pension, Survivor pension, Maternity benefi ts, Sickness benefi ts, Funeral grant
n/a
Social welfare benefi tsNon-contributory Social Welfare Pension Benefi t
Disability pension 44,373 people received MNT115,000 per month (the amount was increased to MNT126,500 from 1 Feb. 2015)
Universal Maternity Benefi t
Universal maternity benefi t 94,882 people received MNT40,000 a month for 12 months
Cash support Cash allowance for poor n/a
Cash support Emergency assistance 815 people received MNT1,200,000 one me
Cash support Livelihood support for orphans age 18–24, homeless
403 people received MNT1,200,000 one me
Cash support Allowance and assistance for people with disabili es
37,300 people
Cash support Allowance for permanent medical care 33,600 people received MNT48,000 per month (the amount was increased to MNT58,000 from 1 Feb. 2015)
Cash support Allowance for permanent home care 393 people received MNT48,000 per month (the amount was increased to MNT58,000 from 1 Feb. 2015)
Support in kind Food and nutri on support 47,548 adults received food coupon of MNT10,000 a month (the amount was increased to MNT13,000 from 1 Jan. 2015)
49
Social welfare services
Community based service for WA 8,700 people
Employability programmes
Programme on prepara on of professional workers
4,182 people
Preparing for Employment 12,581 people
Employment promo on programmes
Employment promo on programme for people over age 40
3,841 people
Employment promo on for herders 2,633 people
Programme for entrepreneur development 10,075 people
Employment promo on for PWD 2,622 people
Youth employment promo on 10,203 people
“Inhabited Mongolia” programme 25,329 people
Senior Experts consulta on services 3,302 people
Loan through specialized funds 9,555 people
Source: SIGO, SWGO and MOL.
Policy gaps and implementa on issuesPolicy gaps
Insurance policy Contribu ons are collected on a monthly basis, which is not adapted to the seasonality of herders’ incomes (This gap was addressed by a policy amendment during the ABND process, in January 2014; now contribu ons can be collected monthly, quarterly or twice a year depending on how the social insurance agency and the insured agree in the contract).
Social insurance benefi ts
The level of benefi ts rela vely low for all con ngencies, par cularly in terms of dura on. The qualifying condi ons are o en hard to meet. Both gaps create disincen ves for par cipa ng to the social insurance scheme.
Working injury and occupa onal disease insurance
Weak inves ga on mechanisms and absence of criteria to assess whether the disease is work related, as well as the ambiguity concerning accidents occurring on the way to/from work aff ect the eff ec veness of the scheme.
Employer representa ves also noted the absence of penal es or provisions to reduce benefi ts if a working accident occurs by fault of the worker.
The disability benefi t off ered for temporary incapacity is too low, i.e. nearly three mes lower than standards prescribed by the ILO Conven on No. 121, Schedule II: 60
per cent of past earnings for a man with a wife and two children as dependents).
The number of claims to the employment injury and occupa onal disease fund could be reduced by enforcing more eff ec ve preven on policies.
50
Maternity Voluntary social insurance off ers lower benefi ts (replacement rate set at 70 per cent of past earnings) although the contribu on rate is the same as the mandatory social insurance maternity benefi t (replacement rate at 100 per cent of past earnings).
Unemployment benefi t eligibility
The eligibility condi on requiring workers to contribute for at least two years, and notably the nine con nuous months immediately preceding their job loss, is too restric ve and causes many who lose their jobs to fail to qualify for an unemployment insurance benefi ts.
Unemployment insurance en tlements do not link with return to work and employment promo on programmes.
Contributory disability pension
The level of benefi ts is low and adjusted in ad-hoc manner, therefore it does not allow for automa c indexa on to the cost of living.
Focus is on providing cash benefi ts, but the benefi ts do not link with some employment promo on and rehabilita on programmes that could reinforce employability of people with disabili es.
EPP: Preparing for Employment
One of the criteria for an individual to be enrolled in the employment promo on programme (EPP) is the period already spent searching a job (over six months), which should be decreased to two–three months.
EPP for herders The demand for this programme in rural area is high. However, limited funding and restric ve eligibility criteria may aff ect its successful implementa on.
Herders o en lack informa on concerning social insurance schemes. For instance, par cipa on in EPPs do not link to promo ng social insurance registra on. Herders are exempted from most taxes; therefore they may not be familiar with and/or willing to contribute to the social insurance system. Special a en on should be given to young herders.
EPP for people over 40 and senior ci zens
MOL should consider improving the design of this programme, notably by including enhanced voca onal training that supports senior workers to adapt their working methods.
EPPs suppor ng employers
The programme includes restric ve qualifying condi ons, which discourages poten al benefi ciaries from accessing the fi nancial grant. For instance, one of the criteria is that the applicant should have worked for the same employer con nuously for the past 12 months; or the employer can guarantee that the applicant will stay for at least six months in the job.
EPPs providing fi nancial support
The fi nancial support such as loans granted by the EPPs for entrepreneurship development, people with disabili es, and herders does not include a component of business skills development.
Implementa on issues
Coverage Although the level of contribu on seems aff ordable for herders (according to market price of livestock the minimum wage equals to price of one sheep), their par cipa on to the voluntary social insurance is very low among herders. The very low coverage, especially among young people, herders and self-employed may denote a lack of interest and awareness on the benefi ts of social security.
Evasion The na onal average wage as reported by the NSO is signifi cantly higher than the average wage declared for paying mandatory social insurance contribu ons, which suggests prac ces of social evasion by employers and employees.
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Accessibility Herders hardly visit the soum centre due to remoteness, and animal husbandry care (maybe once a month).
Contribu on schedule
The contribu on payment schedule is not appropriate or does not meet the income cycle and life style of rural popula on. Herders’ income depends on highly seasonal events like cashmere, milk and live animal sales, and their demand for cash is also dictated by seasonal needs. Herders hold cash only twice a year, at spring during cashmere sale and early December during meat prepara on. (This gap was addressed by a policy amendment during the ABND process, in January 2014; now contribu ons can be collected monthly, quarterly or twice a year depending on how the social insurance agency and the insured agree in the contract).
Awareness There is a signifi cant lack of informa on on procedures and benefi ts from contribu ng to social security systems, especially among the young people.
Targe ng There is no clear defi ni on for a homeless person neither clear procedure of providing a shelter (ger) to them.
Adequacy People with disabili es cannot access services due to inadequate facili es for people with prostheses and orthopaedics and absence of service providers in rural area.
EPPs: General comment
Informa on and awareness on these programmes is low among popula on. Four of the EPPs, notably those for herders, entrepreneur development, people with disabili es and training of professional workers have been more successful according to the MOL annual review for 2014.29 Further improvements to the design all of the programmes are needed. The report highlights poor coordina on, overlapping and contradic ons between the diff erent employment programmes. Funds and capaci es are lacking for the effi cient implementa on of the programmes. EPPs lack funds and good capaci es of labour offi cers in rural areas, where levels of unemployment and poverty are higher than the na onal average.
EPPs to promote voca onal training
The dura on of voca onal training is too short, which hinders the proper acquisi on of professional skills needed to increase compe veness on the labour market.
The selec on process for obtaining an authoriza on to open a training ins tute tends to favour Ulaanbaatar training providers, leaving behind voca onal training supply for seasonal jobs in the rural area, in par cular training facili es/programmes aimed at promo ng rural coopera ves and seasonal job placement.
Conclusions and recommenda onsPar cipa on in the voluntary social insurance system remains low, integra on between income support programmes (e.g. social welfare programmes, unemployment benefi ts) and employment promo on measures is weak. To complete the social protec on fl oor for the working age popula on, the main recommenda ons are: introduce incen ve mechanisms (e.g. subsidies on contribu ons) to increase social insurance coverage among herders and self-employed workers; increase the replacement rate of maternity benefi ts for women covered under the voluntary social insurance scheme; and establish eff ec ve and systema c linkages between social insurance and ac ve labour market programmes.
Table 14 summarizes the recommenda ons gathered during the na onal dialogue process. Items marked with an asterisk (*) indicate a recommenda on to provide new social protec on provisions or increase
29 Report of the Annual review on Implementa on of EPPs for 2014, MOL.
52
of coverage of exis ng provisions. The cost of these addi onal provisions or coverage is calculated using the ILO RAP cos ng tool. A number of recommenda ons would require more in-depth feasibility and/or actuarial studies to assess their costs. These recommenda ons are marked with a delta (Δ) in table 14.
Table 14. Recommenda ons adopted by the ABND for ensuring income security of the working age group
Main recommenda ons* WA1. Increase the replacement rate for maternity benefi ts under voluntary social insurance
scheme to 100 per cent at the same level as for mandatory social insurance scheme.
Δ WA2. Bring more fl exibility in qualifying condi ons to the unemployment insurance benefi ts: nine months qualifying period in the last 24 months in order to improve protec on of workers holding short term contracts; Increase the level of benefi ts at minimum 50 per cent.
* WA3. Create incen ves to join the voluntary social insurance contribu on by subsidizing the contribu on. WA4. Provide more fl exibility in paying voluntary contribu ons (applies also to the social insurance pension fund), especially for herders by revising the contribu on payment schedule (twice a year) and allowing paying back unpaid contribu ons within a determined period of me (Reform introduced in January 2014).
* WA5. Establish systemic linkages between social insurance and EPPs by entailing social insurance registra on as a condi on to access the EPPs.
* WA6. Develop EPPs linking with voca onal training and registra on to social insurance, targe ng specifi cally young herders (most of benefi ciaries of the eight EPP are living in urban areas).
* WA7. Increase linkages of unemployment insurance benefi ts with ALMPS, by designing for instance training responding to the needs of benefi ciaries (EPP target vulnerable workers who require skills upgrading)
Δ WA8. Reinforce public employment services, in par cular career/employment/training counselling, voca onal training and entrepreneurship counselling, rather than focusing only loan programmes, notably services adapted to young people.
* WA9: Develop a comprehensive programme (that combines training and retraining, counselling for entrepreneurship, career counselling) for reinser on of people with disabili es due to working injury and occupa onal diseases.
WA10. Implement awareness and informa on campaigns about new EPPs especially in rural areas.
Addi onal recommenda onsΔ WA11: Use new informa on technologies and fl exible systems, such as telephone-based
contribu on payment services, e-fi le and informa on technology connec vity between aimag and soum social insurance offi ces, mobile offi ces and insurance products linked to herders’ seasonal cash fl ows.
Δ WA12: Implement workplace improvement and injury preven on ac vi es, e.g. public awareness aimed at both workers and employers, arranging consul ng services and dissemina on of good experiences.
Source: UN/G Social Protec on Working Group, 2015.
53
4.4. Older persons
“Basic income security, at least at a na onally defi ned minimum level, for older persons.”
The Mongolian pension system comprises both a social insurance and a social welfare pension schemes. Each respec ve pension scheme off ers income support for all those not capable to work and for survivors of an insured person. Reasons for incapacity to work can be old age, child care responsibili es and disability. For the purpose of this report we have separated the old-age, disability and survivor pensions (the disability pension is addressed under guarantee for the working age group and survivor pension is men oned for each guarantee along the life cycle), although in laws and prac ce the three con ngencies are merged into either contributory or non-contributory schemes.
Exis ng provisions: Disability, old-age and survivor social insurance pensions
Mongolia inherited a defi ned benefi ts (DB) pension system, based on a pay-as-you-go (PAYG) fi nancing method that provided universal coverage and high levels of benefi ts. The pension system was fully funded by the State budget based on some fi nancial redistribu on mechanisms. In 1995, the Government reformed the system and introduced a contributory pension among other new social insurance branches. To date, the system s ll remains largely dependent on State budget transfers. The reforms improved the exis ng scheme but failed to achieve fi nancial sustainability or address a number of gaps in the scheme’s design. As a result, the reform weakened incen ves for contribu ng to the system, notably to the voluntary scheme, and created benefi t inequi es between diff erent groups of workers/popula on cohorts.
In 1999 a No onal Defi ned Contribu on (NDC) scheme was established for workers born a er 1960, with the inten on of gradually moving from no onal to par al funding accounts. The NDC scheme did not alter the parameters of the defi ned benefi ts scheme for those born prior to 1960 and resulted as an abrupt benefi t reduc on for those born a er 1960. Also, the NDC system did not reform key qualifying condi ons such as the re rement age, while it s ll guarantees a minimum pension provision at a level that will con nue requiring substan al fi scal subsidies over the long run. Finally the NDC reform did not address the issue of universal coverage that the voluntary scheme failed to achieve.
54
Besides the old-age, disability and survivor benefi ts provided by the contributory (mandatory and voluntary) Pension Fund, the MPDSP also implements a number of non-contributory social welfare programmes targe ng vulnerable groups.
Currently, the Mongolian contributory pension system has two parallel schemes: one is a DB scheme covering cohorts born before 1 January 1960 and the other is a NDC scheme, namely the Individual Account Re rement System, for those born since 1960.
By 2013, 56,500 people or 5.8 per cent of total insured were s ll contribu ng to the pre-1960 system and not yet re red, and 913,900 people or 71.6 per cent of economically ac ve popula on were contribu ng under the NDC scheme.By the end of 2013, there were 232,100 old-age pensioners,30 equivalent to the en re popula on above the pensionable age, receiving benefi ts from the Pension Insurance Fund of the Social Insurance Fund. A er January 2015, the fi rst pensioners will be eligible to claim benefi ts under the NDC scheme (7,000 people will be eligible for the pension in 2015).
Besides the contributory pension scheme Mongolia has a military service pension and a number of non-contributory pension schemes for military and several social welfare pension benefi t programmes.
DB old-age pension insuranceLegal framework Law on Social Insurance (31 May 1994) Ar cles 4.2, 4.3 and 4.7; Law on Pension and
Benefi ts provided by the Social Insurance Fund (7 June 1994) Ar cle 4Target Ar cle 4.2 (Contracted employment and public offi cials), Ar cle 4.3 (informal sector
and unemployed workers, and herders) born before 1 January 1960
Ar cle 4.7: All reindeer herders living in taiga shall be insured by the State under the pension and benefi t (some say allowance) insurance schemes. For this group the contribu on will be fully subsidized and they will covered under the voluntary scheme (amended on 30 January 2015).
Registra on Both mandatory and voluntary registra onFinancing This contribu on is part of the social insurance Pension Fund that also provides
disability and survivor pension benefi ts. The pension fund is fi nanced following the PAYG model.
Mandatory scheme: the contribu on rate is 14 per cent of the payroll salary (between minimum wage and 10 mes the minimum wage), equally shared between employers and employees.
Voluntary scheme: the contribu on rate is set at 10 per cent of the reference income of the individual. Reference income is declared on a voluntary basis, between the minimum wage and 10 mes the minimum wage.
In addi on, the government transfers part of its budget in order to balance the Fund and contain the defi cit level.
Eligibility Years of service: Not less than 20 years of contribu on to be en tled to a full old-age pension; and at least 10–19 years of contribu on for par al pension, for both voluntary and mandatory schemes. Re rement Age: 55 for women (but if they wish so) and 50 for women who have four and more born or adopted children under age 3 up to age 6; and 60 for men who were born before 1 January 1960. Both men and women engaged in hardship work can also opt for early re rement, from 45 to 55 years old depending on working condi ons.
30 SIGO data provided in Apr. 2014.
55
Benefi ts Old-age pension is calculated based on a DB formula.
At the end of 2013, the monthly average pension benefi t was MNT225,600. The minimum social insurance old-age pension varied from MNT195,000 for a par al pension to MNT230,000 for a full pension from 1 February 2015.
Replacement rate45 per cent of the monthly average wage of the best con nuing fi ve years’ salary and increased by 0.125 per cent of wage for each month addi onal to 20 years or 1.5 per cent per each addi onal year (amendment adopted on 30 January 2015 to enter into force on 1 July 2015). For example, 60 per cent replacement rate a er 30 years. The minimum guarantee, if at least 20 years of contribu on is 75 per cent of minimum wage.
Ac ve contributors
In 2013, 52,100 people were insured under the mandatory DB scheme and 6,400 people under the voluntary DB scheme.
Coverage 232,100 in 2013, which corresponds to a universal coverage.
NDC old-age pension insuranceDue to abrupt reduc on of the replacement rate under the NDC scheme, in February 2015, the Government dra ed an amendment to the Law on Individual Account of Pension Insurance contribu ons. The dra provides alterna ve choice for par cipants born between 1960 and 1979 expected to receive an old-age pension under the current NDC scheme to opt for a pension benefi t under either the ini al DB or NDC, choosing the higher pension. The dra law will be discussed at the Parliament at the fall 2015 sessions.
Legal framework Law on Social Insurance (31 May 1994) Ar cles 4.2 and 4.3; Law on Individual Pension Insurance Contribu on Account (1 July 1999)
Target Ar cle 4.2 (Contracted employment and public offi cials), Ar cle 4.3 (informal sector and unemployed workers, and herders) born a er 1 January 1960
Registra on Both mandatory and voluntary registra on.Financing This contribu on is part of the social insurance Pension Fund that also provides
disability and survivor pension benefi ts. The pension fund is fi nanced following the PAYG model. Mandatory scheme: the contribu on rate is 14 per cent of the payroll salary (between minimum wage and ten mes the minimum wage), equally shared between employers and employees. Voluntary scheme: the contribu on rate is set at 10 per cent of the reference income of the individual. Reference income is declared on a voluntary basis, between the minimum wage and ten mes the minimum wage.
Benefi ts Old age pension is calculated based on a NDC formula. Minimum standard: 20 per cent of the na onal average wage, plus an addi onal 0.5 per cent of the average wage for each addi onal service year beyond the minimum of 15 years.
Eligibility Years of service: 15 years of service and contribu ons
Re rement age: 55 for women (if they wish so) and 50 for women who raised four or more born or adopted children under age 3 up to age of 6; and 60 for men who were born a er 1 January 1960. Both men and women engaged in hardship work can also opt for early re rement, from 45 to 55 years old depending on working condi ons.
Replacement rate
The replacement rate is calcula ng based on years of contribu ons to the no onal account balance, accrued no onal returns for each year (average growth in the last three years’ average wages), and the average life expectancy a er re rement.
Ac ve contributors
In 2013, 714,700 insured under the mandatory scheme, and 140,700 insured under the voluntary scheme, or in total 75.5 per cent of the labour force.
Coverage First pensioner will be eligible in January 2015 (es mated at around 7,000 applicants).
56
In total, 766,815 are insured under the mandatory scheme (DB for those born before 1960 and NDC for those born a er 1960) and 147,100 are insured under the voluntary scheme (DB and NDC), which corresponds to 71.6 per cent of the economically ac ve popula on. The DB and NDC schemes are explained in table 15. Under the voluntary branch, only 23.3 per cent of herders, self-employed and informal economy workers contributed to the social insurance scheme, which was nevertheless higher than the coverage rate of 9.3 per cent in 2010. However, only 8.4 per cent of herders contribute to the voluntary scheme in 2013.31
Table 15. Two parallel pension schemes of MongoliaOld age pension
DB wage-based pension scheme(for those born before 1960)
NDC scheme(for those born a er 1960)
Regulatory Law Law on Pensions and Benefi ts provided by the Social Insurance Fund (1995)
Law on Individual Pension Insurance Contribu on Accounts (1999)
Years of contribu on
At least 20 years for a full pension, 10–20 years for a reduced pension
At least 15 years for a minimum pension
Re rement age 60 for men and 55 for women 60 for men and 55 for women
Contribu on rates
Mandatory insurance: Employee and employer each pay 7 per cent of reference salary
Voluntary insurance: Unemployed and self-employed workers, and herders pay 10 per cent of reference income
Range of pensionable incomes/ earnings: between minimum wage and ten mes minimum wage
Mandatory insurance: Employee and employer each pay 7 per cent of reference salary
Voluntary insurance: Unemployed and self-employed workers, and herders pay 10 per cent of reference income.
Range of pensionable incomes/earnings: between minimum wage and ten mes minimum wage
Pension rates (45 per cent + 1.5 per cent for each addi onal year of contribu on over 20 years) mul plied by the highest salary for any fi ve con nuous years
No onal account accumula on
(contribu ons earmarked for old age + no onal interest calculated according to average growth in covered wages over the past three years) / (annuity factor or life expectancy at re rement)
Source: Law on Pension and Benefi ts provided by the Social Insurance, 1994; Law on Individual Pension Insurance Contribu on Account, 1999.
Survivor pension
Legal framework
Law on Social Insurance (31 May 1994), Ar cles 4.2 and 4.3; Law on Pension and Benefi ts Provided by the Social Insurance Fund (7 June 1994)
Target group Ar cle 4.2 (contracted employees and public service workers), Ar cle 4.3 (informal sector and unemployed workers, and herders)
Registra on Both mandatory and voluntary registra ons.
Financing Employers and workers’ contribu ons to the social insurance Pension Fund:Mandatory scheme: the contribu on rate is included in the 14 per cent of the payroll salary equally shared between employer and employee that fi nances the three benefi ts of the social insurance Pension Fund. Voluntary scheme: the contribu on rate is part of the 10 per cent of the reference income of the individual going to the social insurance Pension fund. Reference income is declared on a voluntary basis: between minimum wage and ten mes the minimum wage.
31 Labour Force Survey and SIGO data provided in Apr. 2014.
57
Benefi ts The number of dependents is taken into considera on in the determina on of the benefi t rate:
• one dependent: 50 per cent of the amount corresponding to a full pension for old age based on the pensionable earnings of the insured;
• two dependent: 75 per cent;• three or more dependent: 100 per cent.
The minimum level of pension must be equal to 50–100 per cent of minimum wage (set at MNT192,000 in 2013) depending on the number of dependents.
Eligibility Family dependents (spouse and children below 16 years old) where an insured person, who has paid contribu ons for not less than 20 years, or for a period of three years out of fi ve years before the death, dies due to a non-occupa onal disease or accident.
Coverage (2013) 766,815 insured under the mandatory scheme; 147,100 insured under the voluntary scheme
Benefi ciaries 22,500 survivor pensioners in 2013 (data are not disaggregated by age).
Military old age pension schemeLegal framework
Law on Pension and Benefi ts of Military Service Personnel (13 June 1994), Ar cle 4.1
Target Members of the Defence Forces, Police, Border Security, Correc onal service, Intelligence, and Emergency Services are eligible for military old age pension.
Eligibility The system requires 25 years of service for men and 20 years of service for womenThere is no legal re rement age.
Replacement rate
The level of benefi t correspond to 80 per cent of the monthly average wage increased by 1.5 per cent of wages for each year addi onal up to 20–25 years.
Benefi t The minimum pension is aligned with the minimum social insurance old age pension that varied from MNT195,000 for a par al pension to MNT230,000 for a full pension from 1 February 2015.
Financing The military pension fund is fi nanced by the government budget
Coverage 15,600 people in 2013
Exis ng social welfare old-age benefi ts The Social Protec on Policy Coordina on and Implementa on Department is the social welfare services division of the MPDSP, and is responsible for designing and planning the non-contributory pensions. Social Welfare Offi ces confi rm the eligibility of the applicants and pay the pension.
Non-contributory social pension
Legal framework
Law on Social Welfare (19 January 2012), Art 12.1.1
Target All men of age 60 and above, all women of age 55 and above; single mothers age 45 or fathers age 50 heading a family of at least four children under age 18.
Benefi ts Pension increased from MNT115,000 to MNT126,500 on 1 February 2015.
Eligibility The person must have never worked or have less than 10 years of contribu on to the mandatory and voluntary social insurance schemes, and therefore be ineligible for a pension under the Social Insurance Pension Fund.
58
Financing Social Welfare Fund fi nanced by the government budget
Coverage 1,693 older persons in 201332
Addi onal cash supports for senior ci zens and for mothers with children are outlined in table 16.
Table16. Other social welfare cash supports
Support Legal framework Target/Eligibility Benefi t Coverage
Addi onal allowance for senior ci zens
Law on Supplementary Allowance for Honoured Senior Ci zens /HSC/ (2008); Government resolu on No. 70, 2012
Senior ci zens who rewarded with a medal of Hero of Mongolia, Hero of Labour, holder of People’s and Honoured tles
MNT150,000–MNT200,000 per month
4,800 people in 2013, with a budget of MNT4.9 billion spent in 2013
Allowance for Mothers with many children
Law on Social Welfare (19 January 2012); Art. 13.5.9
Mothers who were honoured with the fi rst and second rank State medal of “Mother’s Glory”
First rank MNT200,000 and second rank MNT100,000 once a year
202,500 people covered and MNT29 billion spent in 2013
Reimburse-ments and assistance services for older persons
Law on Social Security of Senior Ci zens (2005); Art. 5.1.1–5.1.11
Senior ci zens over 55–60 years old
11 types of reimburse-ments and assistance services
126,000 people covered and MNT14.3 billion spent in 2013
Source: SWGO.
Care services for older persons
Community-based service for older persons
The services provided include counselling, rehabilita on, temporary accommoda on and care, day care home based care and services. The programme is regulated by the Ar cles 17.1.1, 18.1 and 18.2.12 of the Law on Social Welfare.
Since 2013, the services are fi nanced through the local government budgets. The service costs are es mated by Social welfare units at the aimag, soum, district and capital city on the basis of proposals submi ed by the Livelihood Support Council of each respec ve soums and khoroo (district of Ulaanbaatar). The selected proposals are subject to the approval by the local governor’s offi ce.
In 2014 in total 28,300 older people received services from this programme.
Ins tu onal care service for older personsThe programme aims at assis ng single older persons iden fi ed as incapable of living independently with no child to support him or her or with a child who became incapable of providing care due to disability or old age. The iden fi ed benefi ciaries were senior ci zens who were benefi ng from the community based services programme. The programme was introduced and is regulated by the Ar cle 17.1.2 of the Law on Social Welfare.
Since 2013 the programme has been fi nanced through local government budgets. The governors of aimags, districts and the capital city are responsible for approving the applica ons of senior ci zens to
32 Annual report of MPDSP, 2013.
59
the care service programme. In 2013 there were 320 older persons and people with disabili es living in nine specialised care centres.33
Social protec on programmes for older persons in Mongolia are summarized in table 17.
Table 17. Summary of social protec on programmes for older persons
Scheme Number of benefi ciariesDefi ned benefi t old age pension insurance
232,147 people or over 100 per cent of the male popula on over 60, and female popula on over 55 years old (due to early re rement pensions) in 2013.
Defi ned contribu on old age pension insurance
The fi rst pensioner will be eligible from 2015.
Non-contributory military pension benefi t scheme
15,600 people benefi ed in 2013
Non-contributory social welfare old-age benefi t
1,693 older persons in 2013
Social welfare cash supports for older persons
333,300 (double coun ng) people in 2013.
Source: SIGO, SWGO, 2015.
Policy gaps and implementa on issues
Policy gaps
Coverage The coverage rate of the voluntary scheme remains very low, especially among young people, herders and self-employed workers. This can be explained by a lack of awareness and interest in contribu ng for their old-age pension.
Funding The defi ned benefi t (DB) pension system currently operates on a PAYG basis; however the fund is largely in defi cit and projec ons show that these defi cits are likely to grow in the future, even a er considering the impact of the 1999 individual Pension Account or no onal defi ned contribu on (NDC) reform.
Benefi ts There is no automa c indexa on to the cost of living of the levels of the social insurance old-age and survivor pension and the social welfare old-age pension; the level being rather adjusted on an ad-hoc decision.
Confl ict of DB and NDC schemes
The current scheme will provide a lower pension to workers born a er 1960 than those born before 1960; it is also expected that the level of benefi ts under the NDC scheme will be lower than standards recommended by ILO Conven on No. 102.
Re rement age The re rement age is too low to allow for adequate level of benefi ts, in par cular for women, and sustainability of the fund.
Equality of treatment
The re rement age for women is lower than for men which leads to a lower pension for women due to shorter period of contribu ons, in addi on to wages that tend to be lower among female employed for similar jobs and level of qualifi ca ons.
Implementa on issuesMilitary pension
The generous military pension is managed by the Social Insurance Fund, which creates confusion among insured with the other pension funds.
Governance Absence of periodical actuarial reviews, low administra ve capacity and insuffi cient infrastructures are all elements that might jeopardize the fund effi ciency and sustainability.
33 2013 MPDSP Annual Report.
60
Conclusions and recommenda ons
While the par cipa on of private and public employees to the old-age social insurance pension is high, only 23.3 per cent of herders, self-employed and informal economy workers contribute to the voluntary social insurance scheme despite repeated eff orts to increase par cipa on. Therefore, the ABND recommends introducing a subsidy on the contribu on (50 per cent was proposed) of herders, self-employed and informal economy workers to contribute and conver ng the scheme into a mandatory one that would require improved enforcement mechanisms. The development of a more holis c approach to long-term care should also be considered.
Table 18 summarizes the recommenda ons gathered during the na onal dialogue process. Items marked with an asterisk (*) indicate a recommenda on to provide new social protec on provisions or increase of coverage of exis ng provisions. The cost of these addi onal provisions or coverage is calculated using the ILO RAP cos ng tool. A number of recommenda ons would require more in-depth feasibility and/or actuarial studies to assess their costs. These recommenda ons are marked with a delta (Δ) in table 18.
Table 18. Recommenda ons adopted by the ABND for securing social protec on to older persons
Main recommenda ons
E1. Introduce equal re rement age between female and male workers. Δ E2. Introduce a three pillar pension system: Pillar 0: universal minimum pension; Pillar 1:
Contributory social insurance pension; Pillar 2: Supplementary individual saving accounts. * E3: Improve old-age income security of herders and other self-employed individuals by
encouraging their par cipa on in the social insurance scheme. Introduce government subsidies on the contribu ons of the target popula on as an incen ve to increase coverage. Consider reforming the scheme to require the par cipa on of all workers.
Δ E4. Develop a long term care and support system for older persons: nursing homes and programmes promo ng older persons’ par cipa on in social work (e.g child care) and short term assignment (e.g. doctors).
* E5: Automa cally index the amount of the social welfare pension benefi t to the consumer price index (CPI).E6. Open op on to pay the voluntary social insurance contribu on twice a year to follow seasonality of herders’ income (or to allow more fl exibility, pay once a year) (reform introduced in January 2014); provide more fl exibility in paying back unpaid contribu ons (applies also to social insurance Pension Fund and SHI contribu ons. linked to recommenda ons WA4 and H2).
Addi onal recommenda onsΔ E7: Revise the social insurance pension parameters, including automa c indexa on to the CPI,
to address the low level of benefi ts under the NDC scheme. Δ E8: Introduce new scheme of supplemental benefi ts for insured born a er 1960 in case of early
re rement provisions. Δ E9. Based on exis ng social welfare programmes to provide cash or in-kind assistance to poor
older persons, create a more coordinated integrated package that will con nue applying the same qualifying condi ons. E10: In addi on to indexing the pension benefi t, increase minimum pension level but at a reasonable level so it does not create disincen ves to contribute to the social insurance scheme.
Δ E11: Provide an integrated social welfare benefi ts package for poor older persons (age and means targeted): housing benefi ts, fuel allowance, increased health-care package and the minimum pension provide by the new old-age pension system.
Δ E12: Streamline procedures for registra on and introduce e-fi les available at the soum level; introduce IT systems through mobile phone for payment of contribu ons.
Source: UN/G Social Protec on Working Group, 2014.
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5. Step 2: Cos ng methodology, descrip on of the policy op ons (‘scenarios’) to complete the social protec on fl oor and cost projec ons
The cos ng methodology using the RAP protocol
The Rapid Assessment Protocol (RAP), developed by the ILO on the basis of an earlier UNICEF/ILO cos ng tool, was used for this cos ng exercise.
The outcomes of the cos ng exercise include:
• Policy op ons (addi onal social protec on provisions) that could be introduced to complete the social protec on fl oor in Mongolia, in line with the recommenda ons of the assessment.
• Projected costs of policy op ons in Mongolian tugrik (MNT), comparisons of the cos ng results with the GDP and government revenues and expenditures, and es mated costs in reference to government budget projec ons in order to provide preliminary indica ons of the aff ordability of the proposed social protec on provisions.
The results of this cos ng exercise can be used to support discussions with diff erent government agencies on social protec on policy priori es, fi scal space and budget realloca ons.
The RAP uses a simple methodology that builds on single age popula on projec ons, single age es mates of labour force par cipa on rates. The RAP does not aim at producing its own projec ons, therefore projected costs rely on projec ons of demographic, labour market and economic indicators available in the country. For this reason, the cost of the social protec on fl oor is projected to 2020 in this exercise. The sources of data, main assump ons and background calcula ons are listed below.
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Territorial and administra ve units
Mongolia ranks eighteenth by the size of its territory, bordered by China and Russia. Mongolia is divided into 21 aimags (provinces) and the capital, Ulaanbaatar. Since 2006, Mongolia has had 331 soums (districts).
Historical popula on data and projec ons
The RAP uses the demographic actual and projected data produced by the Na onal Sta s cs Offi ce (NSO). The RAP took into considera on the popula on resident in Mongolia, i.e. including the popula on who resides for at least six months or 183 days in a determined year and are registered in administra ve units of Mongolia. Such account of the popula on excludes Mongolian ci zens who have reside abroad for at least six months in a determined year.
The NSO dataset is based on the 2010 popula on census incorpora ng regular updates based on surveys conducted by NSO.
The cos ng exercise u lizes popula on projec ons for the years 2011 to 2020 produced by NSO. The projec ons are based on na onal level mortality assump ons and medium fer lity rate assump ons. In addi on, it is assumed that net migra on is equal to zero.
In 2013, life expectancy at birth in Mongolia was 65.42 for men and 75.01 for women (table 19).
Table 19. Life expectancy in Mongolia 2007-13
Life expectancy at birth 2007 2009 2011 2013 Total 66.54 67.96 68.32 69.11
Male 63.13 64.33 64.68 65.42Female 70.23 71.79 73.76 75.01
Source: NSO, Mongolian Sta s cal Yearbook, 2013.
Figure 11. Overall popula on and revised popula on over age 15 in 2012, (a) male and (b) female
Labour force par cipa on rates
- 20,000 40,000 60,000 80,000
100,000 120,000 140,000 160,000
15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 +
(a) Overall male population (medium scenarios) and the revised population over 15 years old in 2012
Male population over 15 years old projected from medium scenario
Revised male population over 15 years old
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- 20,000 40,000 60,000 80,000
100,000 120,000 140,000 160,000
15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 +
(b) Overall female population (medium scenarios) and the revised population over 15 years old in 2012
Female population over 15 years old projected from medium scenario
Revised female population over 15 years old
Source: NSO.
The historical labour force par cipa on rates come from the NSO Labour Force Survey 2006–12 for people 15 years old and above, which is also the set of data published by ILO (ILO STAT). NSO does not project labour force par cipa on rates. Based on NSO historical datasets of labour force par cipa on rates, RAP uses rates constructed by the ILO-LAB model34 for the years 2013 to 2020. The ILO-LAB model assumes a rela vely stable labour force par cipa on across the age groups over the next fi ve years.
For its historical and projected data of labour force par cipa on, the NSO used a popula on over age 15 that diff ered from the real popula on over age 15. Diff erences are no ceable at younger ages as illustrated in fi gure 11 The NSO was not able to provide an explana on of the diff erences. Therefore the historical and projected labour force par cipa on rates were applied in the RAP to the real popula on over age 15 (NSO medium scenario projec on) which is more representa ve of the whole popula on especially among youth. The RAP uses the blue set of demographic data throughout the calcula ons, including to es mate the labour force par cipa on.
Minimum and average wagesIn Mongolia, minimum wage increases are decided by the Na onal Tripar te Commi ee on Labour and Social Consensus, according to the 2010 Law on Minimum Wage. The 2014 level was iden cal to 2013, at MNT192,000 per month. The RAP assumes that the minimum wage will increase with infl a on and labour produc vity a er 2014, as though it was indexed to infl a on and labour produc vity since 2005.
The average wages (historical data and projec ons) are provided by the Labour Force Survey (LFS) for the period 2005–12. From 2013, the average is adjusted based on labour produc vity and infl a on rates increase.
34 An ILO-LAB model was developed in 2014 for a parallel actuarial study to design an extension of the pension system to herders, self-employed and informal workers, commissioned by MPDSP.
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Table 20. Sources of household income per month, na onal and sub-na onal averages (Q4 2012, in MNT)
Household income Na onal average
Capital city
Provincial centres
Soum centres
Rural
Total Income 852 267 1 021 938 828 034 719 301 651 785 1. Cash income 780 769 988 080 780 932 654 014 490 012
Wage and salaries 391 244 560 887 401 311 355 994 109 161 Pension, benefi ts and other transfers 163 052 183 343 172 053 146 049 128 623 Income from animal husbandry 58 377 3 725 20 133 37 386 198 177 Income from agriculture (crop, harves ng, etc.) 2 192 574 4 754 3 956 2 579 Income for non-agriculture entrepreneurial ac vi es 100 189 165 773 97 096 46 996 17 805 Other income 65 714 74 297 85 586 63 633 33 667
2. Value food and non-food products received free of charge 28 004 29 487 26 399 17 392 32 365
3. Value of food products consumed from own domes c economic ac vi es (animal husbandry and vegetable growing) 43 495 4 371 20 702 47 894 129 408 Source: NSO, 2014, Household Socio-economic Survey.
The NSO has conducted a Households Income and Expenditure Survey (HIES) since 1966 and a Household Socio-economic Survey since 2007, by combining the HIES and Living Standards Measurement Survey. Every year, the survey samples 11,232 households to compile data on age, sex, employment, income, expenditure and consump on. For instance, the results of the survey provide data on household income disaggregated by place of residence which also corresponds to categories of professions. The category ‘rural’ can be equated to income earned by herders (table 20). The NSO defi nes the urban popula on as those who reside in Ulaanbaatar, aimag centres and towns. The rural popula on includes those who reside in soum centres and rural areas.
Poverty indicatorsNSO has determined the minimum subsistence level or na onal poverty line at the regional level since 1998. The minimum subsistence level refers to a minimum consump on level expressed in monetary value. The minimum consump on level refers to a scien fi cally set quan ty of consump on to meet basic needs as defi ned in the food and non-food consump on baskets. The minimum subsistence level was set between MNT130,500 and MNT149,900 per month in 2013.
The poverty headcount index is the share of popula on whose consump on is below the poverty line or minimum subsistence level. The poverty headcount index (or poverty rate) was 27.5 per cent in 2012, the latest data available. NSO an cipates a poverty rate of 25.0 per cent for 2013. The RAP assumes that progress in poverty reduc on will con nue over the coming fi ve years, and will bring down the poverty headcount index to 20.0 per cent by 2020.
Nominal and real GDP and GDP defl ator
The 2005–12 historical GDP data are extracted from the Mongolian Sta s cal Yearbook of the NSO. The Medium Term Fiscal Framework (MTFF) of the Ministry of Finance (MOF) contains a number of macro-economic indicators, including some projec ons to fi ve years. The RAP used historical and projected data from the latest MTFF released in September 2014.
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From 2017 onwards (latest data available), the GDP growth and GDP defl ator are assumed constant at, respec vely, 5.9 per cent annual increase and fi xed at 3.6 defl ator.
The RAP expresses the cost of introducing new social protec on benefi ts as a percentage of projected GDP at current prices.
Headline infl a on For the headline infl a on, the RAP used the annual average of infl a on rate. It compared it to the annual infl a on rate by end of period, which uses the na onal consumer price index (CPI) (base period 2010). The 2005–13 historical data come from NSO. For 2013–17 projec ons, the RAP used projected data from MOF released in the September 2014 MTFF. A er 2017, the RAP assumed headline infl a on will be constant at 6.0 per cent.
Employment and unemployment rateAs a consequence of above, the RAP recalculated the employment/unemployment number and rates, based on the overall popula on age 15 and above. The RAP used the unemployment rate published by MOF in the September 2014 MTFF. From 2017 and onwards, the RAP assumed a constant unemployment rate at 5.9 per cent. It is assumed that the trends of unemployment rate for all ages applies also to the projected unemployment rate of the 15–29 age group a er 2013. There are no data available concerning the projected sex-disaggregated employment and unemployment rates.
Health expendituresThe Health Development Center under the Ministry of Health and Sports compiles health sta s cs and sends to NSO its monthly report on health sta s cs on a monthly basis and its annual report by March every year.
The RAP assumes that health expenditures will increase based on infl a on and demographic growth. However, this assump on might underes mate the real increase in health expenditures, as majority of these expenditures are imputable to u liza on of health services by the popula on residing in Ulaanbaatar
Government total revenues, grants and expendituresTotal government revenues, grants, and expenditures used in the cos ng exercise are based on historical data and projec ons produced by the MTFF of the MOF. The government expenditures and revenues corresponds to a situa on of policy status quo, i.e. if no policy changes are introduced. The RAP expresses the cost of introducing new social protec on benefi ts as a percentage of projected revenue and grants and as a percentage of government expenditures. The revenues and expenditures listed are those of the central government and the Human Development Funds (HDF). In that case, government revenues and expenditures may be underes mated since it does not include the local government budgets and the Social Insurance General Offi ce revenues and expenditures.
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5.1. Health care
“A na onally defi ned set of goods and services, cons tu ng essen al health care, including maternity care that meets the criteria of availability, accessibility, acceptability and quality”
SHI coverage is nearly universal; however eff ec ve access to quality health care remains a challenge for many in rural areas. For instance, the fact that the coverage has dropped by 6 per cent in recent years may indicate customers are dissa sfi ed with the services. A number of surveys showed that the insured are losing trust in the SHI and its benefi ts as they have to pay out of pocket for various diagnos c and tes ng services as well as medical devices, even though they pay insurance contribu ons. To ensure universal and permanent social insurance coverage among the whole popula on, while securing the sustainability of the fund, a number of scenarios are compared to the status quo. The last scenario is built to compare the cost between subsidized contribu ons for categories I and II and a means-tested approach (table 21).
Table 21. Health care scenarios
Scenario H1-0 Status quo: Maintain monthly SHI contribu on for Category II (herders, unemployed workers and voca onal students) at MNT670.
Scenario H1-1 Increase the SHI contribu on of Category II to 1 per cent of the minimum wageScenario H1-2 Fully subsidize the SHI contribu on for Category II.Scenario H1-3 Introduce a proxy-means-tested scheme: Full subsidize the SHI contribu on of the
poor of Category II; for non-poor of Category II, increase contribu on to 1 per cent of the minimum wage.
Source: UN/G Social Protec on Working Group, 2014.
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Scenario H1-1: Increase the SHI contribu on of Category II to 1 per cent of the minimum wage
Assump ons
• Category II of the SHI scheme comprises herders, unemployed workers and students enrolled in voca onal training courses. They represented 324,500 insured in 2011, reaching full coverage based on a government subsidy on all contribu ons. It is assumed that not all unemployed workers registered as Category II insured and contributed to the SHI Fund; some are also registered under Category IV corresponding to the self-employed.
• In 2011, when the Government subsidized all SHI Fund contribu ons using the Human Development Fund (HDF), the insured popula on overpassed the total resident popula on by 3 per cent. It is assumed that the diff erence was due to a double coun ng of voca onal students under Category II and Category III.
• The number of insured in 2011 is used as a reference year, assuming that the scheme reached full coverage thanks to HDF subsidies. The split of insured by category as a percentage of the total popula on in 2011 is used for projec ng universal SHI coverage. The division among the categories is assumed to be constant over the years.
• It is assumed that na onal demographic growth applies similarly across all categories of the popula on, including herders, unemployed workers and voca onal students.
• Health expenditure diff erence between rural and urban popula ons is es mated by the diff erence in number of physicians per 10,000 people between rural and urban areas: 18.8 for in rural areas, 43.4 for Ulaanbaatar. This proxy for health-care expenditure gives a rough ra o of 2.3 in 2008 (source: WHO Country Coopera on Strategy Mongolia, 2010–15). The ra o of 2.3 is assumed to be constant over the next 12 years.
• Rural health expenditure proxies for Category II health expenditures, as students' health expenditures are limited. It is also assumed that heath expenditures of those unemployed will be limited (those unemployed represent a minority of this group, most of the unemployed being unregistered and counted under the category of self-employed, together with the informal economy workers). Herders' households tend to consume less due to the under-provision of health services and lack of facili es in rural areas, while services and facili es in Ulaanbaatar are overprovided.
• It is assumed that health expenditures will increase based on infl a on, labour produc vity (wage increases) and demographic growth. However, this assump on might underes mate real increases in health expenditures, as the majority of these expenditures concern the popula on in Ulaanbaatar.
• Finally, the level of minimum wage is not indexed to infl a on and labour produc vity, but rather adjusted on a policy-based decision. The RAP assumes that the level will increase with labour produc vity and infl a on a er 2016.
ResultsThis scenario intends to compare the extent of savings that could be made on the SHI Fund if contribu ons of Category II (herders, unemployed workers and voca onal students) were less subsidized. Considering the above assump ons, the savings would bring a saving of 0.02 per cent of GPD in 2014 up to 0.05 per cent of GDP in 2020 in comparison to the status quo situa on.
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Scenario H1-2: Fully subsidize the SHI contribu on for Category II
Assump ons• All the above assump ons concerning the health scenario 1-1 remain valid.
• As it was the case in 2011, for such scenario, it is believed that government will use resources of the Human Development Fund.
ResultsThis second scenario aims at comparing the cost of fully subsidizing the contribu ons of Category II (herders, unemployed workers and voca onal students), which would secure universal SHI coverage, with the status quo (contribu on set at MNT670 per month) and a lower subsidy (contribu on set at 1 per cent of the minimum wage). Considering the above assump ons, results show that providing a full subsidy on the contribu on of insured under Category II would increase the cost of the SHI scheme by only 0.06 per cent in 2014 and 0.01 per cent of GDP a er 2017 onwards in addi on to the costs of the status quo scenario.
Scenario H1-3: Introduce a proxy-means-tested scheme: Full subsidize SHI contribu on of poor of Category II; for non-poor of Category II, increase contribu on to 1 per cent of the minimum wage
Assump ons• All the above assump ons concerning the health scenario H1-1 remain valid.
• For comparison purpose, par cipants in the na onal dialogue decided to es mate the cost of a means-tested SHI scheme that would fully subsidized the contribu on of the poor of Category II and enforce a contribu on at 1 per cent of the minimum wage for the non-poor of Category II.
• To iden fy the poor, the RAP uses the poverty headcount index. The poverty headcount index is the share of popula on whose consump on is below the poverty line or minimum subsistence level.
• The administra on cost for a proxy-means-tested scheme is assumed to be at 15 per cent of the programme cost.
Results
The cos ng exercise of this third scenario does not bring signifi cant conclusion concerning poten al savings if a proxy-means tested SHI scheme were to be introduced. Introducing a means tested scheme that would fully subsidize the contribu on of the 25.0 per cent iden fi ed as poor would not allow any savings un l 2016, and the savings will be quite insignifi cant at 0.04 per cent by 2020. Such results fi nd their explana on in the very limited targeted non-poor popula on under such measure (6.0 per cent of the popula on in 2014) and the high administra ve cost induced by a proxy-means tested system.
A summary of the scenarios and results of the cos ng exercise are provided in table 22.
Table 22. Results of cos ng SHI scenarios
2014 2016 2018 2020Scenario H1-0: Status quo (monthly contribu on for Category II at MNT670)Target group = Category II of SHI (000s) 352 364 375 386Take-up rate (per cent) 67 83 100 100Group covered by this scenario (000s) 235 303 375 386Cost of scenario (in million MNT) 20 952 34 657 54 740 72 542Cost, percentage of GDP (current) 0.10 0.13 0.17 0.20
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Cost, percentage of Gov. Revenues and grants 0.34 0.47 0.54 0.57
Scenario H1-1: Increased contribu on of Category II to 1 per cent of minimum wage
Target group = Category II of SHI (000s) 352 364 375 386
Take-up rate (per cent) 67 83 100 100Group covered by this scenario (000s) 235 303 375 386Cost of scenario (in million MNT) 17 255 27 872 43 168 56 246
Cost, percentage of GDP (current) 0.08 0.10 0.13 0.15
Cost, percentage of Gov. Revenues and grants 0.28 0.38 0.43 0.44
Scenario H1-2: Contribu on for Category II fully subsidized by the governmentTarget group (000s)= Category II of SHI 352 364 375 386Take-up rate (per cent) 100 100 100 100Group covered by this scenario (000s) 352 364 375 386Cost of scenario (in million MNT) 34 402 44 659 57 907 75 800Cost, percentage of GDP (current) 0.16 0.16 0.18 0.21
Cost, percentage of Gov. Revenues and grants 0.55 0.61 0.57 0.60Scenario H1-3: Means-tested scheme: Fully subsidized contribu on for poor of Category II, for non-poor at 1 per cent of the minimum wage
Target group= Poor Category II of SHI (000s) 88 84 75 77Take-up rate (per cent) 100 100 100 100Group covered by this scenario (000s) 88 84 75 77Target group= Non-poor Category II of SHI (000s) 264 280 300 309Cost of scenario (in million MNT) 21 744 31 689 45 574 59 458Cost, percentage of GDP (current) 0.10 0.11 0.14 0.16Cost, percentage of Gov. Revenues and grants 0.35 0.43 0.45 0.47
Source: ILO RAP calcula ons, 2015.
ConclusionPar cipants in the na onal dialogue concluded that the cost-opportunity of introducing a 1 per cent contribu on or a means tested system for Category II of SHI would not jus fy to amend the subsidy on Category II contribu on; the risk of reducing SHI coverage being too high. Therefore the status quo is kept at part of the low package scenario for implemen ng a social protec on fl oor and the fully subsidized Category II contribu ons being part of the high package scenario, accoun ng for an addi onal 0.01 per cent of GDP by 2020.
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5.2. Children
“Basic income security for children, at least at a na onally defi ned minimum level, providing access to nutri on, educa on, care and any other necessary goods and services”
To complete the social protec on fl oor for children, the main recommenda ons are to index the allowance of the Child Money Programme (CMP) to infl a on and increased the school meals allowance. The UN/G Social Protec on Working Group protec on translated these two recommenda ons into the following scenarios for payment of the support grant. Scenarios C1-2 and C3-3 were included with the purpose of comparing the cost of a universal scheme with the one of a proxy-means-tested programme (table 23).
Table 23. Children scenarios
Scenario C1-0 Status quo: Maintain the parameters of the CMP, the allowance not being indexed to infl a on.
Scenario C1-1 Index the CMP allowance to infl a on.
Scenario C1-2 Introduce a proxy-means tested CMP allowance indexed to infl a on.Scenario C3-0 Status quo: Maintain the parameters of the school meal programme in kindergarten,
the meal allowance not being indexed to infl a on.Scenario C3-1 Maintain the level of the meal allowance in kindergarten (half-board: MNT1,650 per
day, and full-board: MNT2,400 per day) and indexed it to infl a on.Scenario C3-2 Increase the meal allowance in kindergarten to MNT2,000 per day for half-board
children and MNT4,000 per day for full-board children (indexed to infl a on).Scenario C3-3 Introduce a targeted scheme with the following parameters: MNT2,000 per day for half-
board poor children, and MNT4,000 per day for full-board poor children (indexed to infl a on); for those not eligible, the meal allowance being subsidized at 50 per cent.
Source: UN/G Social Protec on Working Group, 2014.
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The ILO Social Protec on Floors Recommenda on, 2012 (No. 202) prescribes the indexa on of benefi ts on infl a on and/or wage increase. Therefore this scenario will be included in the minimum package of social protec on. Following fi rst dialogues of the ABND, the Government started discussing amendment to the CMP to introduce an indexa on to the CPI.
Scenario C1-1: Index CMP allowance on infl a on
The recommenda on of the na onal dialogue was to maintain the allowance of the CMP at its current level of MNT20,000 per child per month, however, the CMP allowance should be indexed to the CPI to align the programme with Recommenda on No. 202.
Assump ons• The RAP assumes that a er 2014 (latest projected data available) the annual infl a on rate by
end of period will be similar to the annual average infl a on rate. For calcula ng the cost of indexa on of the CMP allowance to infl a on, we use the annual average infl a on rate.
• The addi onal cost will be covered by the Human Development Fund.
• The MPDSP es mates the administra ve cost of the non-means-tested CMP to be no more than 2 per cent.
• All other parameters of the CMP, notably its universality, remain unchanged.
Results
The introduc on of an indexa on of the CMP allowance would comply with interna onal labour standards and add a cost of 0.16 per cent of GDP in 2014 and 0.46 per cent of GDP by 2020.
Scenario C1-2: Introduce a proxy-means tested CMP allowance indexed to infl a on
Assump ons
• The above assump ons iden fi ed for scenario C1-1 remain valid.
• For comparison purpose, par cipants in the na onal dialogue decided to es mate the cost of a proxy-means tested CMP targe ng poor children. To iden fy the poor, the scenario uses the poverty headcount index, the share of popula on whose level of consump on is below the poverty line or minimum subsistence level.
• It is assumed that an addi onal 15.0 per cent of poverty incidence is applied on the top of the annual na onal poverty rate to the ra o of children age 0–18 considered to be poor in Mongolia.
• The administra on cost for a proxy-means tested scheme is assumed to be at 15 per cent of the programme cost.
Results
A proxy-means tested CMP would allow the government to save 1.02 per cent of GPD in 2014 compared to an indexed CMP; however such savings will gradually decrease and amount to 0.92 per cent of GDP by 2020, but leaving three children out of four without income support. A universal child allowance adjusted on the cost of living would only cost 1.19 per cent of GPD.
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Scenario C3-1: Maintain the level of the meal allowance in kindergarten (half-board: MNT1,650 per day, and full-board: MNT2,400 per day) and index the amount to infl a on
Evidence-based research conducted by UNICEF shows that early child development is crucial for the long-term well-being of children and posi ve outcomes in adulthood. Reaching children in a holis c manner and incorpora ng health, nutri on, water and sanita on, educa on and interven ons that support their full development are essen al to ensure the future of the country. In Mongolia, health and educa on are free of charge and accessible for all children; nevertheless, nutri on quality remains a major concern. Par cipants in the na onal dialogue decided that eff orts are needed to improve the quality of nutri on among young children (age 2–6) a ending kindergarten. The least interven on would be to index the meal allowance on the CPI. The UN/G Social Protec on Working Group also es mated the overall cost of increasing the meal allowances to what is assumed to be a more adequate level.
Assump ons• The above assump ons iden fi ed for scenario C1-1 remain valid.• Mongolia has six full-board kindergartens (with as an average 150 children each). The exercise
assume that 10 per cent more children will enrol in a full-board kindergarten every year.• It is assumed that the enrolment of children age 2–6 in kindergartens is ed to female labour
force par cipa on.• It is assumed that children will a end kindergarten 45 weeks per year (from September to
June).• It is assumed that the na onal poverty rate also applies to the ra o of children age 2–6 considered
to be poor in Mongolia.• Children enrolled in full-board kindergartens are most likely from vulnerable families, e.g. parents
with disabili es, single mothers, and so on (UNICEF).• Reducing by half the subsidy on kindergartens meals will not impact the enrolment rate.• It is assumed that households where both parents are working are those who require to enrol
their child in a kindergarten. For this reason, the take-up rate is aligned to projected female labour par cipa on rates.
ResultsThe indexing of the school meals allowance to infl a on, consistent with Recommenda on No. 202, would increase the cost of the programme by 0.04 per cent of the GDP in 2014 and 0.12 per cent by 2020. However, the level of the allowance does not allow suffi cient quality of the meals to improve child nutri on.
Scenario C3-2: Increase the meal allowance in kindergarten to MNT2,000 per day for half-board children and MNT4,000 per day for full-board children and index to infl a on
The na onal dialogue par cipants agreed that the current amount allocated for the school meals allowance might not off er suffi cient nutri on. Therefore, it was proposed to es mate the cost of increasing the school meals allowance to MNT2,000 per day for all half-board children and MNT4,000 per day for full-board children. The school meals allowance should be indexed to infl a on to align with Recommenda on No. 202.
Assump ons• The above assump ons iden fi ed for scenario C3-1 all apply for scenario C3-2.
ResultsIncreasing the kindergarten meals allowance, as a priority to improve nutri on among children at early ages, would raise the cost of the programme by a constant 0.03 per cent of GDP compared to the cost when indexed to infl a on. The cost is contained as the number of benefi ciaries children would be limited (180,000 children in 2020).
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Scenario C3-3: Introduce a targeted scheme for kindergarten meals with the following parameters: MNT2,000 per day for half-board poor children, and MNT4,000 per day for full-board poor children (indexed to infl a on); for those not eligible, the meal allowance is subsidized at 50 per cent.
Assump ons• The above assump ons iden fi ed for scenario C1-1 remain valid.
• For comparison purposes, par cipants in the na onal dialogue decided to es mate the cost of a proxy-means tested school meals allowance targe ng poor children. To iden fy the poor, the scenario uses the poverty headcount index. The poverty headcount index is the share of popula on whose consump on is below the poverty line or minimum subsistence level.
• It is assumed that an addi onal 15.0 per cent of poverty incidence is applied on the top of the annual na onal poverty rate to the ra o of children considered to be poor in Mongolia, so 28.7 per cent of children age 2-6 are considered.
• According to the 2012 Household Socio-economic Survey, on a na onal average, where the head of household is between age 17 and 40, the household will have 1.2 children (0–18 years old). The RAP assumes that the same number applies to households below the poverty line. Because fi gures are not available on the composi on of poor households and in par cular number of young children (0–6 years old) in poor households, this exercise assumes that each poor household has 1.0 child 0–6 years old.
• The administra on cost for a proxy-means tested scheme is assumed to be at 15 per cent of the programme cost.
ResultsThe cos ng exercise of this third scenario that would only benefi t to poor children does not bring signifi cant conclusion concerning poten al savings. The targeted popula on (children 2–6 years old) being limited in number, introducing a means tested scheme would allow savings in limited extent (0.12 per cent of GDP), due to the high administra on cost of a proxy-means tested system. Table 24 summarizes the scenarios of child income security and nutri on and the es mated costs.
Table 24. Results of cos ng child income security and nutri on2014 2016 2018 2020
Scenario C1-0: status quo: no indexa on of CMP allowanceTarget group 0–18 years old (000s) 1 001 1 028 1 059 1 093Take-up rate (per cent) 100 100 100 100Group covered by this scenario (000s) 1 001 1 028 1 059 1 093
Cost of scenario (in million MNT) 244 976 251 766 259 135
267 466
Cost, percentage of GDP 1.15 0.91 0.80 0.73Cost, percentage of government revenues and grants 3.94 3.44 2.55 2.12
Scenario C1-1: CMP allowance indexed to infl a onTarget group 0–18 years old (000s) 1 001 1 028 1 059 1 093Take-up rate (per cent) 100 100 100 100Group covered by this scenario (000s) 1 001 1 028 1 059 1 093Cost of scenario (in million MNT) 277 313 323 246 373
830433 539
Cost, percentage of GDP 1.31 1.17 1.15 1.19Cost, percentage of government revenues and grants 4.46 4.41 3.68 3.43
Scenario C1-2: Proxy-means tested CMP indexed to infl a onTarget group 0–18 years old (under poverty line) (000s) 250 237 212 219Take-up rate (per cent) 80 100 100 100Group covered by this scenario (000s) 200 237 212 219
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Cost of scenario (in million MNT) 62 531 83 822 84 295 97 759Cost, percentage of GDP 0.29 0.30 0.26 0.27Cost, percentage of government revenues and grants 1.00 1.14 0.83 0.77Scenario C3-0: status quo: half-board meal at MNT1,650 per day, and full-board: MNT2,400 per day (no indexa on)Total popula on 2–6 years (000s) 311 316 318 316Take-up rate (per cent) 56 56 57 57Group covered by this scenario (000s) 173 178 181 180Cost of scenario (in million MNT) 67 613 69 724 70 777 70 477Cost, percentage of GDP 0.32 0.25 0.22 0.19Cost, percentage of government revenues and grants 1.09 0.95 0.70 0.56Scenario C3-1: half-board meal at MNT1,650 per day, and full-board: MNT2,400 per day (indexed to infl a on)Total popula on 2–6 years (000s) 311 316 318 316Take-up rate (per cent) 56 56 57 57Group covered by this scenario (000s) 173 178 181 180Cost of scenario (in million MNT) 76 538 89 519 102
104114 236
Cost, percentage of GDP 0.36 0.32 0.31 0.31Cost, percentage of government revenues and grants 1.23 1.22 1.01 0.90Scenario C3-2: half-board meal at MNT2,000 per day, and full-board: MNT4,000 per day (indexed to infl a on)Total popula on 2–6 years (000s) 311 316 318 316Take-up rate (per cent) 56 56 57 57Group covered by this scenario (000s) 173 178 181 180Cost of scenario (in million MNT) 82 264 96 279 109
906123 105
Cost, percentage of GDP 0.39 0.35 0.34 0.34Cost, percentage of government revenues and grants 1.32 1.31 1.08 0.97Scenario C3-3: Targeted scheme: for poor children, half-board meal at MNT2,000 per day, and full-board: MNT4,000 per day (indexed to infl a on); those non-eligible subsidized at 50%Total popula on 2–6 years (000s) 311 316 318 316Take-up rate (per cent) 56 56 57 57Fully subsidized group covered by this scenario (000s) 43 41 36 36Half-subsidized group covered by this scenario (000s) 130 137 145 144Cost of scenario (in million MNT) 57 164 66 029 73 844 83 099Cost, percentage of GDP 0.27 0.24 0.23 0.23Cost, percentage of government revenues and grants 0.92 0.90 0.73 0.66Source: ILO RAP calcula ons, 2015.
ConclusionThe indexa on of the CMP allowance and the increase of the school meals programme for all children is a priority to improve child income security and increase level of nutri on which is fundamental for their personal development. Both interven on would cost an addi onal 0.72 per cent of GDP by 2020 bringing the cost of both programmes to 1.53 per cent of the GDP in 2020. The cos ng exercise also concludes that the introduc on of a proxy-means tested system to target poor children under the CMP and school meals programme would not lead to signifi cant savings. In the opposite, decrease in kindergarten registra ons, in access to nutri on and drop-off in mee ng basic needs will have a nega ve impact on child development. Inves ng in child nutri on, educa on and access to essen al needs is inves ng in the future of the country.
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5.3. Working age
“Basic income security, at least at a na onally defi ned minimum level, for people in ac ve age who are unable to earn suffi cient income, in par cular in cases of sickness, unemployment, maternity and disability.”
To complete the social protec on fl oor for the working age popula on, the main recommenda ons are to ensure equal maternity benefi ts for all formal and informal workers, self-employed workers and herders, as well as to expand the coverage of the social insurance scheme among herders, self-employed and informal economy workers, notably those benefi ng from the ten EPPs of the Ministry of Labour (MOL). The cost of these recommenda ons is es mated through the scenarios contained in table 25.
Table 25. Working age scenarios related to social insurance
Scenario WA1-0 Status quo: Maintain voluntary social insurance scheme replacement rate during maternity leave at 70 per cent (current law).
Scenario WA1-1 Increase the replacement rate during maternity leave to 100 per cent under the voluntary scheme.
Scenario WA2-1 Subsidize 50 per cent of the contribu on for voluntary maternity, sickness and working injury insurance.
Scenario WA2-2 Subsidize 70 per cent of the contribu on for voluntary maternity, sickness and working injury insurance.
Scenario WA3-1 Subsidize 100 per cent of the voluntary social insurance contribu on for all benefi ciaries of EPPs (pension and short-term benefi ts).
Scenario WA3-2 Subsidize 100 per cent of the voluntary social insurance contribu on for “vulnerable group” and 70 for the “less vulnerable group” (Pension and short-term benefi ts).
Scenario WA3-3 Subsidize 100 per cent of the voluntary social insurance contribu on for “vulnerable group” and 50 for the “less vulnerable group” (Pension and short-term benefi ts).
Source: UN/G Social Protec on Working Group, 2014.
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Addi onal recommenda ons also aim at promo ng social insurance and employment among youth in rural areas, as well as improving return to wok of the insured unemployed workers and people with disabili es due to a working injury. These recommenda ons were translated into the following scenarios (table 26).
Table 26. Working age scenarios related to ac ve labour market policies
Scenario WA4-1 Introduce a new EPP targe ng young herders that combines counselling for entrepreneurship and subsidy for social insurance young herders for one year.
Scenario WA4-2 Introduce a new EPP targe ng young herders that combines counselling for entrepreneurship and subsidy for social insurance young herders for three years.
Scenario WA4-3 Introduce a new EPP targe ng young herders that provides voca onal training, appren ceships, a s pend and subsidy for social insurance contribu ons (six months).
Scenario WA4-4 Introduce a new EPP targe ng young herders that provides voca onal training, a s pend and subsidy for social insurance contribu ons (three months).
Scenario WA5 Implement an up-skilling training of two months for unemployed skilled workers of formal economy (unemployment insurance benefi ciaries, programme funded by Social Insurance Fund).
Scenario WA3-2 Subsidize 100 per cent of the voluntary social insurance contribu on for “vulnerable group” and 70 for the “less vulnerable group” (Pension and short-term benefi ts).
Scenario WA6 Implement a re-skilling training for people with disabili es due to working injury and occupa onal diseases (benefi ciaries of disability pension from social insurance working injury fund, funded by the Social Insurance Fund).
Source: UN/G Social Protec on Working Group, 2014.
Scenario WA1-1: Increase the replacement rate during maternity leave to 100 per cent under the voluntary scheme.
Maternity benefi ts aim at compensa ng women in employment for the loss of income when res ng before and a er birth and taking care of the new born baby. It therefore does not overlap with the social welfare maternity benefi ts that provides an allowance to cover the costs resul ng from pregnancy and child birth. The replacement rate for maternity benefi ts under the mandatory social insurance system is 100 per cent of last 12 month average while the rate is only 70 per cent of last 12 month average income for voluntary insured mothers. In this scenario, the RAP es mates the cost of ensuring equal treatment between female workers in the private sectors and those engaged in herding, self-employment and informal economy, thus li ing up the replacement rate during maternity leave to 100 per cent for both schemes.
Assump ons• The fer lity rate of the target popula on (herders, self-employed) is the same as the na onal
fer lity rate.• The number of births did not take into considera on the mul ple birth per mother and child
mortality at birth. • The number of insured under Categories II (herders, unemployed workers and voca onal
students) and IV (self-employed) in 2011 represent 100 per cent of the target popula on of the voluntary social insurance scheme. The RAP assumes that voca onal students are not part of the target popula on for the voluntary scheme. They either fall under Ar cle 4.2 (mandatory social insurance) or are inac ve.
• All voluntary insured contribute at the level of the minimum wage.• The RAP assumes that the coverage rate of the voluntary insurance scheme will reach 100 per
cent by 2020.
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ResultsEnsuring equality of treatment between female workers covered under the voluntary and mandatory schemes for maternity benefi ts would not cost more than an addi onal 0.1 per cent of GDP, even in the case that the voluntary scheme reaches full coverage by 2020. The cost will be in any case absorbed by addi onal social insurance contribu ons due to increase in insured popula on, therefore such measure will have a very limited impact on the balance of the Social Insurance Fund.
Scenario WA2: Subsidize 50 per cent or 70 per cent of the contribu on of herders, self-employed and informal economy workers for maternity, sickness and working injury insurance.This scenario introduces a subsidy on the social insurance contribu on of herders, self-employed and informal economy workers, as an incen ve to increment coverage under the social insurance system. It compares the cost between a 50 and 70 per cent subsidy.
This scenario is aligned with the current debate of reforming the old-age pension system to convert the voluntary par cipa on of herders, self-employed and informal economy workers into a mandatory par cipa on with subsidized contribu ons. Such reform would also apply to short-term benefi ts. The RAP has simulated what would be the cost of the scenario if all the target popula on would be contribu ng to the scheme by 2020, i.e. 100 per cent of coverage of the target popula on. Nevertheless, a more in-depth actuarial study is necessary to provide a more accurate cost es mate.
Assump ons• The RAP assumes that voca onal students are not part of the target popula on for the voluntary
scheme. They are registered either under Ar cle 4.2 (mandatory social insurance) or are inac ve.
• Number of insured under Categories II (herders) and IV (self-employed) in 2011 represent 100 per cent of the target popula on of the voluntary social insurance scheme. It is used as the baseline data to project herders and self-employed popula on.
• All voluntary insured contribute at the level of the minimum wage.• The RAP assumes that the voluntary social insurance scheme will cover the full target popula on
by 2020 (100 per cent of coverage).
ResultsThe addi onal cost of introducing a subsidy on the social insurance voluntary contribu on for short term benefi ts would remain limited to 0.02 per cent in 2014 (for both levels of subsidy), up to 0.10 per cent for a 50 per cent subsidy and 0.14 per cent for a 70 per cent subsidy with a simulated full coverage by 2020.
Scenario WA3: Subsidize the social insurance contribu on for benefi ciaries of EPPs (pension and short-term benefi ts): (1) full subsidy for all benefi ciaries; (2) par al subsidy for the “less vulnerable” (50 per cent or 70 per cent).
The scenario 3 of the working age group aims to create incen ves for increasing the social insurance coverage, especially among the benefi ciaries of the ten EPPs implemented by the MOL. Eight EPPs were ini ated in 2012 and were complemented by two addi onal programme in 2014, bringing the number of EPPs to ten.
It is proposed to subsidize social insurance contribu ons of all par cipants in the ten EPPs. The cost would be covered by the budget of the MOL. It compares the cost of diff erent op ons: (1) all benefi ciaries of the ten EPPs benefi t from full subsidies on their social insurance contribu on for the dura on of their programme; (2) only the “vulnerable” group will receive full subsidy, the “less vulnerable” ones benefi t from a 50 per cent or 70 per cent subsidy. It is expected that subsiding the social insurance contribu on would create an incen ve for con nuing par cipa ng in the scheme a er the period of benefi ng from an EPP.
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Assump ons• The number of benefi ciaries of the EPPs will increase by 10 per cent every year.
• As an average, an EPP lasts for 6.06 months (see 'EPP benefi ciaries').
• EPP design will not change over the next six years.
ResultsThe most expensive op on, i.e. a full subsidy for all benefi ciaries of the EPPs during the period of the programme, would cost 0.05 per cent in 2014 and 0.10 per cent in 2020. The diff erence between fully subsidized and par ally subsidized EPPs remains modest (0.01 per cent of GDP by 2020).
Scenario WA4: Introduce two new EPPs targe ng young herders: (1) one programme that combines counselling for entrepreneurship and subsidy for social insurance for young herders for one or three years, (2) a second programme that provides voca onal training, a s pend and subsidy for social insurance contribu ons: dura on of three months; or six months with appren ceship.
Although the MOL has recently introduced targeted EPPs, the par cipants in the na onal dialogue felt that none fully addressed the needs of young herders. For that reason, the following two programmes were proposed: (1) personalized entrepreneurship counselling for one year (low scenario) or three years (high scenario); and (2) targeted training for herding ac vi es during three months (low scenario) or six months with a three-month appren ceship (high scenario). Because young herders must con nue to meet subsistence costs for themselves and their families during training periods, the training programme will include a monthly s pend. As in the above scenarios, during the whole period of the programme, the young herders receive a subsidy on their social insurance contribu ons as to create incen ves among young workers to par cipate in the social insurance system. Benefi ciaries of the training programme receive a full subsidy and those benefi ng from the entrepreneurship counselling programme receive a par al subsidy (90 per cent). The targeted popula on for this scenario is the youth, age 15–29, engaged in herding produc on, either seeking to improve their husbandry ac vi es and/or exploring new local economic opportuni es and the establishment of small enterprises.
Assump ons• The ra o rural/urban of the overall popula on also applies to the age group 15–29.
• The na onal unemployment rate among youth (age 15–29) applies to youth in rural areas too.
• The cost of running personalized and collec ve con nued entrepreneurship counselling is es mated at MNT15,000 per session, on an average. This costs has been iden fi ed in consulta on with the ILO Community-Based Enterprises Development programme which has a long experience in providing such targeted programmes in rural areas of developing countries.
• One out of fi ve of rural youth is willing to develop and/or reinforce his or her own business and enhance voca onal skills.
• Average training cost per head and per month is es mated at MNT200,000 during the fi rst three months, and then MNT100,000 for the three consecu ve months. The young herder programme uses exis ng training, thus there is no to develop new training curricula. The average dura on of training is three months for the low scenario, and six months including a three months of appren ceship for the high scenario.
• The monthly s pend is fi xed at MNT190,000, aligned with the current s pend of the EPP on Prepara on of Professional Workers.
• During the appren ceship, the employer receives a subsidy from the MOL equivalent to half of the minimum wage to be paid to the benefi ciary and social insurance contribu on.
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ResultsThe introduc on of an addi onal EPP targe ng young herders would cost, for the high scenario, 0.12 per cent of GDP for three years of personalized entrepreneurship counselling and 0.13 per cent for targeted training that would include appren ceship too by 2020. A low scenario would respec ve cost 0.04 per cent of GDP and 0.03 per cent of GDP by 2020. The cost also includes a subsidy on the social insurance contribu on. Therefore, it is suggested introducing both high scenario programmes in order to be er target the needs of young herders.
Scenario WA5: Implement an up-skilling training of two months for unemployed skilled workers in the formal economy (unemployment insurance benefi ciaries, programme funded by the Social Insurance Fund).
This scheme would complement the exis ng unemployment insurance system by strengthening its link with ac ve labour market policies (ALMPs) and facilitate return to work of those receiving unemployment benefi ts. Par cipants in the na onal dialogue agreed on the introduc on of an up-skilling training programme targe ng unemployment insurance benefi ciaries. Such up-skilling programme will also contribute to smooth economic restructura on by providing training opportuni es to help those most aff ected by these changes gaining new skills in high demand.
Assump ons• The number of unemployment insurance benefi ciaries will follow the trend of the unemployment
rate over the years.
• The unemployment rate is constant at 5.9 per cent a er 2017.
• The cost of re-training course for benefi ciaries is similar to the cost of training under the “Conduct Employment Training Programme” per head, amoun ng to MNT131,000 per month. It is lower than the cost used in the above scenario because we are here considering up-skilling of workers rather than equipping them with new skills. The cost is indexed to labour cost.
• The dura on of the training is two months.
• Benefi ciaries can undergo only one up-skilling training per year.
• In 2014, half of unemployment insurance benefi ciaries undergo the up-skilling programme and the ra o remains constant over the years.
ResultsReinforcing the unemployment insurance scheme would cost 0.03 per cent of government grants and revenues by 2020. During the ABND process, there was a request to explore possible linkages of the unemployment insurance benefi ts with possible ALMPs. Such request should be addressed through a more in-depth study assessing the fi nancial, legal and ins tu onal feasibility of diff erent op ons.
Scenario WA6: Implement a reskilling training for people with disabili es due to working injury and occupa onal diseases (benefi ciaries of disability pension from social insurance working injury fund, funded by the Social Insurance Fund).
This scheme would complement the exis ng disability pension provided by the social insurance scheme and the EPP targe ng people with disabili es. This scenario essen ally targets those receiving a disability pension from the working injury scheme. The new proposed re-skilling programme would off er some adapted training and re-training aimed at maintaining benefi ciaries of the disability pension in some ac vity.
Assump ons• The number of benefi ciaries of the occupa onal disability pension remains constant during the
period 2013–20, at the level of the average number of benefi ciaries for the period 2005–13.
• The programme targets at all the benefi ciaries of the disability pension, assuming that all people with disability can somehow benefi t from being trained for new jobs.
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• Average training cost per head and per month is es mated at MNT400,000 (and indexed to labour cost). The training curricula need to adapt to the target group, and therefore may also require innova ve methodologies, introduc on of new technologies and more experienced trainers.
• The average dura on of training is six months.
ResultsThe introduc on of a re-training programme for benefi ciaries of the disability pension would cost between 0.08 per cent of GDP in 2014 and 0.09 per cent in 2020. This cost represents 0.24 per cent of government grants and revenues in 2014 and 0.27 per cent in 2020. Here again, more in-depth feasibility studies are needed to eff ec vely target the need of people with disabili es. Nevertheless, the introduc on of the scenario during the ABND demonstrates the shared concern among all stakeholders to improve the integra on of people with disabili es into the labour market and society.
The cost es mates for each scenario are summarized in table 27.
Table 27. Results of cos ng: Increasing social insurance coverage and promo ng employment of the working age group
2014 2016 2018 2020Scenario WA1-0: Status quo: Replacement rate during maternity leave at 70%, voluntary scheme
Target group (Number of births by female workers under Art. 4.3 of social insurance Law: herders, self-employed and informal eco-workers) (000s) 32 32 31 31Take-up rate (per cent) (Insured under voluntary social insurance as a percentage of target workers) 19 25 33 44Group covered by this scenario (000s) 6 8 10 14Cost of scenario (in million MNT) 3 462 5 761 9 589 16 089Cost, percentage of GDP 0.02 0.02 0.03 0.04Cost, percentage of government revenues and grants 0.06 0.08 0.09 0.13
Scenario WA1-1: Replacement rate during maternity leave at 100%, voluntary schemeTarget group (number of births by female workers under Art. 4.3 of Social Insurance Law: Herders, self-employed workers) (000s) 32 32 31 31Take-up rate (per cent) 20 60 100 100Group covered by this scenario (000s) 6 19 31 31Cost of scenario (in million MNT) 5 186 19 575 40 983 51 789Cost, percentage of GDP 0.02 0.07 0.13 0.14Cost, percentage of government revenues and grants 0.08 0.27 0.40 0.41
Scenario WA2-1: Contribu on to maternity, sickness, employment injury is 2% of minimum wage, 50% of contribu on subsidized by the government, for voluntary scheme
Target group (number of herders, self-employed workers) (000s) 675 697 719 740Take-up rate (per cent) 20 60 100 100Target group covered by this scenario (000s) 135 418 719 740Cost of scenario (in million MNT) 3 266 12 895 28 249 37 478 Cost, percentage of current GDP 0.02 0.05 0.09 0.10Cost, percentage of government revenues and grants 0.05 0.18 0.28 0.30
Scenario WA2-2: Contribu on to maternity, sickness, employment injury is 2% of minimum wage, 70% of contribu on subsidized by the government, for voluntary scheme
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Target group (number of herders, self-employed workers) (000s) 675 698 719 740Take-up rate (per cent) 20 60 100 100Group covered by this scenario (000s) 135 419 719 740Cost of scenario (in million MNT) 4 574 18 061 39 549 52 469 Cost, percentage of current GDP 0.02 0.07 0.12 0.14Cost, percentage of government revenues and grants 0.07 0.25 0.39 0.42Scenario WA3-1: Voluntary social insurance Contribu on subsidized by the government at 100% (Pension and short-term benefi ts) for all benefi ciaries of EPPsNumber of benefi ciaries of 4 “Vulnerable Group” EPPs (000s) 38 46 56 68Number of benefi ciaries of 2 “Less vulnerable Group” EPPs (000s) 30 36 44 53
Cost of Scenario (in million MNT) 9 993 15 406 23 762 37 073 Cost, percentage of current GDP 0.05 0.06 0.07 0.10Cost, percentage of government revenues and grants 0.16 0.21 0.23 0.29Scenario WA3-2: Voluntary social insurance Contribu on subsidized by the government at 100% for “vulnerable group” and at 70% for “less vulnerable group” (pension and short-term benefi ts)Number of benefi ciaries of 4 “Vulnerable Group” EPPs (000s) 38 46 56 68
Number of benefi ciaries of 2 “Less vulnerable Group” EPPs (000s) 30 36 44 53
Cost of scenario (in million MNT) 8 640 13 319 20 543 32 052 Cost, percentage of current GDP 0.04 0.05 0.06 0.09Cost, percentage of government revenues and grants 0.14 0.18 0.20 0.25
Scenario WA3-3: Voluntary social insurance Contribu on subsidized by the government at 100% for “vulnerable group” and at 50% for “less vulnerable group” (pension and short-term benefi ts)Number of benefi ciaries of 4 “Vulnerable Group” EPPs (000s) 38 46 56 68
Number of benefi ciaries to the 2 “Less vulnerable Group” EPPs (000s) 30 36 44 53
Cost of scenario (in million MNT) 7 737 11 928 18 398 28 704 Cost, percentage of current GDP 0.04 0.04 0.06 0.08Cost, percentage of government revenues and grants 0.12 0.16 0.18 0.23Scenario WA4-1: Low: EPPs linked to social security for young herders – Entrepreneurship counselling + social insurance subsidy during one yearTarget popula on 1 (15–29 years old, unemployed people in rural areas) (000s) 7 6 5 4
Target popula on 2 (15–29 years old in rural areas, willing to develop their own business) 15 14 12 11
Take up rate 50 70 100 100
Number of benefi ciaries (000s) 11 14 17 15
Cost of scenario (in million MNT) 5 048 7 890 12 495 14 085 Cost, percentage of current GDP 0.02 0.03 0.04 0.04Cost, percentage of government revenues and grants 0.07 0.11 0.12 0.11
Scenario WA4-2: High: EPPs linked to social security for young herders – Entrepreneurship counselling + social insurance subsidy during three years
Target popula on 1 (15–29 years old, unemployed people in rural areas) (000s) 7 6 5 4
Target popula on 2 (15–29 years old in rural areas, willing to develop their own business) (000s) 15 14 12 11
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Take up rate 50 70 100 100
Number of benefi ciaries (000s) 11 14 17 15
Cost of scenario (in million MNT) 15 143 23 671 37 485 42 255 Cost, percentage of current GDP 0.07 0.09 0.12 0.12Cost, percentage of government revenues and grants 0.24 0.32 0.37 0.33
Scenario WA4-3: High: EPPs linked to social security for young herders – voca onal training + s pend + social insurance subsidy during training for six months (three months full- me training; three months appren ceship)Target popula on 1 (15–29 years old unemployed people in rural areas) (000s) 7 6 5 4
Target popula on 2 (15–29 years old in rural areas, willing to develop their skills) (000s) 15 14 12 11
Take up rate 50 70 100 100
Number of benefi ciaries (000s) 11 14 17 15
Cost of scenario (in million MNT) 18 930 28 439 43 284 46 902 Cost, percentage of current GDP 0.09 0.10 0.13 0.13Cost, percentage of government revenues and grants 0.30 0.39 0.43 0.37
Scenario WA4-4: Low: EPPs linked to social security for young herders – voca onal training + s pend + social insurance subsidy during training (3 months)Target popula on 1 (15–29 years old, unemployed people in rural areas) (000s) 7 6 5 4
Target popula on 2 (15–29 years old in rural areas, willing to develop their skills) 15 14 12 11
Take up rate 50 70 100 100
Number of benefi ciaries (000s) 4 4 5 4
Cost of scenario (in million MNT) 4 573 6 172 8 948 9 567 Cost, percentage of current GDP 0.02 0.02 0.03 0.03Cost, percentage of government revenues and grants 0.07 0.08 0.09 0.08Scenario WA5: Up-skilling training of two months for unemployed skilled formal economy workers (unemployment insurance benefi ts funded by social insurance) Number of unemployment insurance benefi ciaries funded by social insurance (000s) 9 5 5 5
Take up rate 80 100 100 100
Benefi ciaries par cipa ng in upskilling course (000s) 7 5 5 5
Cost of Scenario (in million MNT) 2 459 2 198 2 866 3 261 Cost, percentage of current GDP 0.01 0.01 0.01 0.01Cost, percentage of government revenues and grants 0.04 0.03 0.03 0.03
Scenario WA6: Reskilling training for people with disabili es due to working injury and occupa onal diseases (benefi ciaries of disability pension from social insurance working injury fund)
Number of benefi ciaries of disability pension from social insurance working injury fund (000s) 6 6 6 6
Cost of Scenario (in million MNT)15 344 20 675 26 355 33 982
Cost, percentage of current GDP0.08 0.08 0.08 0.09
Cost, percentage of government revenues and grants 0.24 0.28 0.26 0.27
Source: ILO RAP calcula ons, 2015.
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ConclusionIncreasing the level of social insurance benefi ts for herders, self-employed and informal workers appears to be a policy necessity to ensure equality of treatment between the two schemes; the cost would be capped at 0.10 per cent of GDP even in the eventuality of reaching a full coverage. Par cipants in the na onal dialogue opted for a subsidized contribu on of the short-term benefi ts at 50 per cent, more for an equity concern towards the formal workers than a cost issue. The es mated cost of introducing a subsidy on the short-term benefi ts contribu ons, its feasibility and sustainability should in any case be further assessed by an in-depth actuarial study.
An upgraded package of ALMPs targe ng vulnerable groups such as young herders, unemployed workers and people with disabili es, as proposed through the na onal dialogue process would cost less than 1 per cent of GDP. Further design and feasibility study would be necessary to refi ne the parameters of such programmes.
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5.4. Older persons
“Basic income security, at least at a na onally defi ned minimum level, for older persons.”
To complete the social protec on fl oor for the old-age group, the main recommenda ons are to introduce incen ve mechanisms for increasing par cipa on of herders, self-employed and informal workers, and to adjust the exis ng social welfare allowance for older people in order to guarantee a certain level of income security (e.g. the amount of benefi ts should be indexed to infl a on).
In line with the exis ng policy, the target group includes all women over age 55 and all men over age 60.
Furthermore, par cipants in the na onal dialogue agreed on the introduc on of the subsidy on the voluntary social insurance contribu on as to create an incen ve among herders and self-employed workers to par cipate in the old-age pension scheme. The UN/G Social Protec on Working Group translated the above recommenda ons into the scenarios contained in table 28.
Table 28. Older persons scenarios
Scenario E1-0 Status quo: Maintain the social welfare pension at the same level (MNT115,000), and do not index to infl a on.
Scenario E1-1 Index the social welfare pension (MNT115,000) to infl a on.Scenario E2-1 Subsidize the contribu on of herders, self-employed and informal workers to the
old-age pension scheme by 50 per cent.
Scenario E2-2 Subsidize the contribu on of herders, self-employed and informal workers to the old-age pension scheme by 70 per cent.
Source: UN/G Social Protec on Working Group, 2014.
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Scenario E1-1: Index the social welfare pension (MNT115,000) to infl a on
This social welfare programme provides a minimum income guarantee to all women (55 years) and men (60 years) who have never worked, or have less than ten years of contribu on to the social insurance scheme. The social welfare old-age pension is not indexed to infl a on. Par cipants in the na onal dialogue felt this was weakness in the social welfare system, as infl a on has fl uctuated signifi cantly in the past few years.
Assump ons• Sex-disaggregated data on social welfare benefi ciaries are not available. The average growth
rate of the target popula on (male over 60 years old, women over 55 years old) on both male and female groups was applied in the RAP cos ng exercise.
• The number of benefi ciaries of the social welfare old-age pension grows in parallel with the demographic growth of this age group.
• In the status quo scenario, it is assumed that the MPDSP will not increase the pension over the next six years.
ResultsBecause the number of benefi ciaries is very limited (around 3,000–4,000 individuals), indexing the social welfare old-age pension to infl a on would not have any major impact in terms of cost. The addi onal cost represents only 0.01 per cent of GDP or 0.03 per cent of government grants and revenues by 2020.
Scenario E2: Subsidize the contribu on of herders, self-employed and informal economy workers to the old-age pension scheme by 50 per cent or 70 per cent.The second scenario for the old-age protec on assesses the cost of introducing a subsidy on the contribu on to the social insurance pension fund as an incen ve to increase par cipa on in the social insurance system. The measure aims to extend old-age pensions to herders and self-employed workers and will also increase protec on against fi ve other risks since the par cipa on to the social insurance scheme gives access to a package of six benefi ts: sickness, maternity, working injury, old-age, disability and survivors. The monthly contribu on to the pension fund (long-term benefi ts) is 10 per cent of the reference wage, and the monthly contribu on to the allowance fund (short-term benefi ts) is 2 per cent of the reference wage.
The scenario compares the cost of a subsidy for the contribu on of herders, self-employed and informal economy workers set at 50 per cent of the reference wage and one at 70 per cent.
This scenario is aligned with the current debate on reforming the old-age pension system to convert the voluntary par cipa on of herders, self-employed and informal economy workers into mandatory par cipa on. The RAP has roughly simulated the cost of the scenario if the en re target popula on contributed to the scheme by 2020. Nevertheless, a more in-depth actuarial study is necessary to provide a more accurate es mate of the cost, feasibility and sustainability of such proposal.
Assump ons• The RAP assumes that voca onal students are not part of the target popula on for the voluntary
scheme. They are either registered under Ar cle 4.2 (mandatory social insurance) or are inac ve.
• The number of insured under categories II (herders) and IV (self-employed) in 2011 represent 100 per cent of the target popula on of the voluntary social insurance scheme.
• All voluntary insured contribute at the level of the minimum wage.• The RAP assumes that the coverage rate of the voluntary insurance scheme will reach 100 per
cent by 2020. The take up rate is similar to the one used for scenarios WA2.
86
ResultsIntroducing a subsidy of 50 per cent of the contribu on based on the reference wage would cost 0.51 per cent of GDP by 2020 once the social insurance voluntary scheme achieves full coverage of the herders and self-employed popula on, and 0.72 per cent if the subsidy is set at 70 per cent. In terms of government revenues and grants, it represents respec vely 1.48 per cent and 2.08 per cent for full coverage of the target popula on.
The scenarios and costs of increasing old-age pension coverage for herders and self-employed workers are summarized in table 29.
Table 29. Results of cos ng: Increasing old age pension coverage among herders and self-employed workers
2014 2016 2018 2020Scenario E1-0: Status quo: No indexa on of the social welfare pensionTarget popula on (male over 60, female over 55) (000s) 231 292 328Cost of scenario (in million MNT) 2 793 3 135 3 536 3 974Cost, percentage of GDP 0.01 0.01 0.01 0.01Cost, percentage of government revenues and grants 0.04 0.04 0.03 0.03Scenario E1-1: Social welfare pension indexed to infl a onTarget popula on (male over 60, female over 55) (000s) 231 259 292 328Cost of scenario (in million MNT) 3 162 4 025 5 100 6 442Cost, percentage of GDP 0.01 0.01 0.02 0.02Cost, percentage of government revenues and grants 0.05 0.05 0.05 0.05Scenario E2-1: Subsidize old-age contribu on of herders, self-employed and informal economy workers at 50%. Target popula on (herders and self-employed) (000s) 675 697 719 740Take-up rate (per cent) 20 60 100 100Target group covered by this scenario (000s) 135 418 719 740Cost of scenario (in million MNT) 16 329 64 477 141
246187 388
Cost, percentage of current GDP 0.08 0.23 0.43 0.51Cost, percentage of government revenues and grants 0.24 0.88 1.39 1.48Scenario E2-2: Subsidize old-age contribu on of herders, self-employed and informal economy workers at 70%. Target popula on (herders and self-employed) (000s) 675 697 719 740Take-up rate (per cent) 20 60 100 100Target group covered by this scenario (000s) 135 418 719 740Cost of scenario (in million MNT) 22 861 90 268 197
745262 344
Cost, percentage of current GDP 0.11 0.33 0.61 0.72Cost, percentage of government revenues and grants 0.33 1.23 1.95 2.08Source: ILO RAP calcula ons, 2015.
ConclusionPar cipants in the na onal dialogue opted for a subsidized contribu on of old-age pension benefi ts at 50 per cent. The es mated cost of introducing a subsidy on the short-term benefi ts contribu ons, its feasibility and sustainability should be further assessed in any case by an in-depth actuarial study. Indexing the social pension appears to be an immediate necessity.
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6. A Na onally Defi ned Social Protec on Floor for Mongolia 6.1. Consolidated package to close gaps in the social protec on fl oor in Mongolia
To close gaps in the social protec on fl oor in Mongolia, the UN/G Social Protec on Working Group proposed two possible schemes, a ‘low scenario’ and a ‘high scenario’, outlined in table 30.
Table 30. Proposed combined low and high es mates
Low HighHealth
Scenario H1-0: Maintain SHI contribu on fully subsidized for Category II and par ally for Category II (status quo)Scenario H1-2: Fully subsidize the SHI contribu on for Category II
Children
Scenario C1-1: Index the Child Money Programme (CMP) allowance to infl a onScenario C3-1: Maintain the school meal allowance at current level (for half-board children, MNT1,650 per day, and for full-board children MNT2,400 per day) and index the amounts on infl a onScenario C3-2: Increase food allowance: half-board meals MNT2,000 per day, full-board meals MNT4,000 per day (indexed on infl a on)
Working age
Scenario WA1-1: Increase the replacement rate during maternity leave to 100 per cent under the voluntary schemeScenario WA2-1: Subsidize maternity, sickness, employment injury contribu on of herders, self-employed and informal economy workers at 50%.
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Scenario WA2-2: Subsidize maternity, sickness, employment injury contribu on of herders, self-employed and informal economy workers at 70%.
Scenario WA3-1: Subsidize 100 per cent of the social insurance contribu on for all benefi ciaries of EPPs (Pension and short-term benefi ts).
Scenario WA3-3: Subsidize 100 per cent of the voluntary social insurance contribu on for “vulnerable group” and 50 per cent for the “less vulnerable group” (Pension and short-term benefi ts).
Scenario WA4-1: Introduce a new EPP targe ng young herders that combines counselling for entrepreneurship and subsidy for social insurance young herders for one year.Scenario WA4-2: Introduce a new EPP targe ng young herders that combines counselling for entrepreneurship and subsidy for social insurance young herders for three years.Scenario WA4-3: Introduce a new EPP targe ng young herders that provides voca onal training, appren ceships, a s pend and subsidy for social insurance contribu ons (six months).Scenario WA4-4: Introduce a new EPP targe ng young herders that provides voca onal training, a s pend and subsidy for social insurance contribu ons (three months).Scenario WA5: Implement an up-skilling training of two months for unemployed skilled workers of formal economy (unemployment insurance benefi ciaries, programme funded by Social Insurance Fund).Scenario WA6: Implement a reskilling training for people with disabili es due to working injury and occupa onal diseases (benefi ciaries of disability pension from social insurance working injury fund, funded by the Social Insurance Fund).
Older persons
Scenario E1-1: Index the social welfare pension (MNT115,000) on infl a on
Scenario E2-1: Subsidize the contribu on to the old-age pension scheme by 50 per cent for herders, self-employed and informal economy workers.Scenario E2-2: Subsidize the contribu on to the old-age pension scheme by 70 per cent for herders, self-employed and informal economy workers.
Source: UN/G Social Protec on Working Group, 2014.
89
6.2. Cost comparison of diff erent op ons for social protec on fl oor in Mongolia
Figure 12. Addi onal cost to complete the social protec on fl oor for the combined low and high scenarios, per programme, as a percentage of GDP (2014–20)
Low scenario 1.42%
High scenario 1.91%
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
2014 2015 2016 2017 2018 2019 2020
Pension (Subsidized herders, self-employed and informal workers contirbutioncontribution)Working age ALMP (PWD & UI)
Working Age ALMP (youth support)
Working Age ALMP (subsidized contribution for EPP beneficiaries)
Working Age SI (subsidized herders, self-employed and informal workers contirbution formaternity+sickness+injury)Working age SI (Maternity)
Children (Meal allowance)
Pension (Subsidized herders, self-employed and informal workers contribu on)
Working age ALMP (PWD & UI)
Working Age ALMP (youth support)
Working Age ALMP (Subsidized contribu on for EPP benefi ciaries)
Working Age SI (Subsidized herders, self-employed and informal workers contribu on for maternity+sickness+injury)
Working age SI (Maternity)
Children (Meal allowance)
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
-0.50%
Children (CMP)
Health (Subsidy cat. II)
Source: ILO RAP calcula ons, 2015.
It would cost an addi onal 1.91 per cent of GPD to achieve the high scenario of a social protec on fl oor in Mongolia and 1.42 per cent of GDP in the case of the low scenario, on the top of the already projected social protec on expenditures by 2020 (fi gures 12 and 13). Because universal SHI has already been achieved, expenses would mainly reinforce social protec on of and nutri on for children, income security and employability of the working age group, as well as old-age protec on. To complete the higher social protec on fl oor scenario, the addi onal cost as a percentage of GDP by 2020 will be spread as follows: 0.60 per cent for the children guarantee, 0.63 per cent for the working age guarantee, and 0.66 per cent for the older persons guarantee.
90
Figure 13. Results of the addi onal cost es mates for the combined low and high scenarios per guarantee
Source: ILO RAP calcula ons, 2015.
Comple ng a social protec on fl oor in Mongolia would bring the social expenditures into a range from 4.23 per cent to 4.56 per cent of GDP in 2015 (fi gure 14). If projected to six years, total social protec on expenditures to realize a social protec on fl oor could range from 4.46 per cent rising annually to 4.95 per cent of GDP by 2020, which corresponds to an addi onal 0.91 per cent of GDP in the most expansionist case.
This level remains much lower than the social protec on expenditures engaged by the Government in 2010-12 when introducing a temporary cash transfer to every ci zen. In 2011, the social protec on expenditures peaked at 9.5 per cent of GDP and then fell back to its levels prior to 2007.
Figure 14. Projec ons of social expenditures as a percentage of GDP, comparing the cost of the status quo, low and high scenarios for a social protec on fl oor
Source: ILO RAP calcula ons, 2015.
91
Table 31. Regional average (weighted by total popula on) of public social protec on expenditure by guarantee, latest available year (percentage of GDP)
Major area, region or country
Total social protection expenditure
Public health care expenditure
Public social protection expenditure for older persons
Public social protection expenditure for persons of active age 1
General social assistance
Public social protection expenditure for children
Africa 4.3 2.6 1.3 0.4 0.2 0.2 North Africa 10.0 3.2 5.0 1.1 0.3 0.4 Sub-saharan Africa 4.3 2.6 1.1 0.3 0.2 0.1 Asia and the Pacific 4.6 1.5 2.0 0.4 0.4 0.2 Western Europe 27.1 7.9 11.1 5.0 0.9 2.2 Central and Eastern Europe 17.8 4.4 8.3 3.0 1.3 0.8 Latin America and the Caribbean 13.9 4.0 4.6 2.0 2.6 0.7 North America 17.0 8.5 6.6 2.8 1.1 0.7 Middle East 11.0 2.0 3.3 1.5 3.4 0.8 World 8.8 2.8 3.3 1.5 0.7 0.4 1 Social benefits for persons of active age (excluding general social assistance). Source: ILO, World Social Protection Report 2014–15 (ILO, 2015).
As shown in table 31, the share of social protec on expenditures to GDP in Mongolia is lower compared to the world average share of public social protec on expenditures (without public health-care expenditures) to GDP (6.0 per cent), even in the situa on of a high social protec on fl oor scenario; however, higher than the Asia-Pacifi c average (3.1 per cent).
6.3. Defi ni on and cost of a social protec on fl oor for MongoliaA er a review of the cost es mates of the diff erent op ons aimed at providing at least a minimum guarantee to all people in Mongolia, par cipants in the na onal dialogue agreed on a defi ni on of a social protec on fl oor. Table 32 presents the defi ni on established through that process.
Table 32. Defi ni on of a social protec on fl oor for Mongolia
Guarantee Components of the social protec on fl oorAlready in place, to be improved
New programme
Health Universal health insurance coverage, with a full subsidy of the contribu on for vulnerable group and herders
Quality, available and aff ordable health care for all throughout the country, with eff orts to improve supply and services in rural areas
Children Universal and free general educa on, including free boarding schools
Universal CMP, safeguarded by a law and automa cally indexed to the cost of living
92
Children Improved early-child nutri on through a higher meal allowance indexed to the cost of living for all children a ending kindergarten (2–6 years old)
Improved environment to ensure the development and fundamental rights of children of herder families
Working age Universal social insurance coverage for sickness, maternity and working injury, with subsidized contribu on for herders, self-employed and informal economy workers (50 per cent subsidized by the State budget)
Replacement rate of maternity benefi ts at 100 per cent for all workers, including herders, self-employed and informal economy workers.
Reinforced Employment Promo on Programmes (EPPs) and introduc on of a specifi c programme for young herders
Return to work and retraining programmes for vic ms of working accident and occupa onal disease, and unemployment insurance.
Older persons
Three pillar pension system composed of: - Universal basic pension indexed to the cost of living - Mandatory social insurance old-age pension coverage, with subsidized contribu on for herders, self-employed and informal economy workers (50 per cent subsidized by the State budget)- Supplementary pension plans. Create an integrated benefi ts and services package, including a long term care system for older persons, based on exis ng social welfare programmes to provide cash or in-kind assistance to poor older persons
Source: Un/G Social Protec on Working Group, 2014.
Figure 15. Projec ons of social expenditures as a percentage of GDP, comparing the status quo and comple on of a social protec on fl oor (2014-20)
4.27%
3.81%
3.53% 3.37%
3.27% 3.10% 3.07% 3.04%
4.48% 4.47% 4.42% 4.49% 4.57% 4.65%
4.72%
4.24% 4.21% 4.15% 4.21% 4.25% 4.32% 4.40%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
2013 2014 2015 2016 2017 2018 2019 2020
social expenditures as percentage of GDP at current prices (status quo)
Cost of the agreed SPF in terms of social expenditures
Cost of the agreed SPF in terms of social expenditures, ALMPs being funded by other budget
Source: ILO RAP calcula ons, 2015.
93
The cost of a social protec on fl oor in Mongolia would be around 4.7 per cent of GDP in 2020 and the por on would fall to 4.4 per cent if new EPPs are included under other budget lines, as per the na onal defi ni on of social expenditures (fi gure 15). The addi onal cost to complete the social protec on fl oor by 2020 would represent 1.7 per cent of GDP above the status quo of social expenditures. In other words, a social protec on fl oor would cost 44,650 tugrik (MNT) per month per capita in 2020, or US$22.50,35 which would represent an addi onal expenditure of US$8 per month per capita to achieve a social protec on fl oor in Mongolia by 2020.
This cost includes all social protec on expenditures already commi ed, indexa on of social welfare benefi ts to the cost of living, subsidies on social insurance contribu ons and some addi onal programmes that would complete the social protec on fl oor in Mongolia.
To conclude, in Mongolia, the addi onal long-term cost to ensure universal access to income security and basic social services would be only 1.7 per cent of GDP by 2020, bringing social expenditures to 4.7 per cent to GDP. The social protec on fl oor would guarantee universal health insurance with subsidies for all vulnerable groups and herders to ensure their eff ec ve access to health care; maintain and index the current universal child allowance, in addi on to already exis ng free general educa on (un l upper secondary school); introduce universal social insurance coverage, including old-age pension, with subsidized contribu on for all herders, self-employed and informal economy workers; and fi nally establish targeted and eff ec ve EPPs, notably for young herders.
6.4. Fiscal space for fi nancing the na onally defi ned social protec on fl oor of Mongolia
The Government budget on a high defi cit in 2014
The Mongolian na onal budget is strongly dependent on the economic growth. The dynamics of the consolidated revenue and expenditure of the Mongolian budget shows highly cyclical revenue fl uctua ons. Figure 16 was developed based on data provided by the NSO, MOF and Ministry of Economic Development (MED), following fi scal requirements set forth in the Law on Fiscal Stability.
Figure 16. Consolidated budget, share of social expenditures and growth rate of revenues and expenditures compared to previous year (billion MNT)
Source: NSO, MED, MOF, Medium-Term Fiscal Framework Statement.
During the years of fast economic growth, State revenues expanded signifi cantly, due mainly to the increase in commodity prices. In parallel, the Government invested those revenues in social policies.
35 Exchange rate of 16 Mar. 2015: US$1 = MNT1985.6
94
The cash transfer programme to every ci zen in 2010–12 for a total amount of MNT1,704 billion was one such investment. During those years, the country did not manage to build suffi cient savings for future ‘bad’ years. The budget is overly dependent on mining and is unable to withstand a decline in mineral prices, thus public debt has increased substan ally in recent years. In 2011 and 2012 budget expenditure grew by 62.2 per cent and 19.9 per cent, which was higher than the revenue growth in those years of 35.4 per cent and 15.5 per cent. It was in 2013 that the Government reduced social and other expenditures.
Due to lower than an cipated State revenues in 2014, the budget defi cit exceeded the limits of the special fi scal requirements and is likely to reach 10 per cent of GDP. Moreover, public debt as a percentage of GDP exceeded fi scal requirements and reached 57.0 per cent. The current fi scal situa on of Mongolia suggests it will ghten budget expenditures, so the 2015 State budget was approved with signifi cant cuts in spending, including social spending.
Financing a social protec on fl oorMongolia fi nances its social protec on programmes from three diff erent sources (fi gure 17). First, the Social Welfare Fund fi nances social pensions, allowances and specifi ed social services. Second, the Human Development Fund (HDF) partly replaced the former Development Fund of Mongolia in 2010 and covers the CMP, tui on fees, housing subsidies, special allowances for medical services and government subsidies on social insurance contribu ons, notably the SHI contribu on of vulnerable groups. Thirdly, the State budget also covers the defi cit of the pension social insurance.
Figure 17. Total social protec on expenditures in Mongolia by source (billion MNT)
218.7 244.2 99.3 131.9
233.6 233.3 264.8 272.8 285.8 298.8 309 320 334
139 145.9
170.6 189.1
272.4 294.6 320 341 348.2 372 396 422 446
89.9 89.7 277.6
733.1
693.7
269 252 268 274
289 302
315 330
0
200
400
600
800
1000
1200
1400
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2. Social Welfare Expenditure 3. Subsides to social insurance fund 4. Social transfers from human development fund
Source: NSO, MED, MOF, Medium-Term Fiscal Framework Statement, calculated according to the needs of the budget.
In 2011 and 2012 when the economy was favourable, expenditures of the social protec on system increased sharply due to cash transfers from the HDF. However, from 2013 many of these cash transfers, notably the cash transfers to every ci zen, stopped as the HDF could not build suffi cient resources to support those expansive programmes. As a result the share of social protec on expenditure to GDP dropped from 8.6 per cent to 3.8 per cent in 2014. If no addi onal social protec on measures are included (thus maintaining the status quo) this share will drop to 3.0 per cent of GDP by 2020 (fi gure 18).
95
Figure 18. Projec ons of social expenditures as percentages of GDP and State revenues
Source: NSO, MED, MOF, Medium-Term Fiscal Framework Statement, calculated according to the needs of the budget.
Comple ng a social protec on fl oor in Mongolia would bring social expenditures to 15.3 per cent of State revenues and grants in 2014 to slowly decrease to 13.6 per cent by 2020. It corresponds to an addi onal 4.8 per cent of revenues and grants by 2020 (fi gure 19).
Figure 19. Social protec on expenditures and cost of a social protec on fl oor as percentages of revenues and grants, actual and projected
12.99% 12.99% 12.71% 12.76%
9.92% 9.04%
8.78%
15.28% 16.43% 16.67% 17.51%
14.65% 13.68% 13.63%
14.45%
12.71%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
2013 2014 2015 2016 2017 2018 2019 2020
Status quo as % of Revenues Agreed SPF scenario as % of Revenues
Agreed SPF scenario as % of Revenues-ALMPs
Source: NSO, MED, MOF, Medium-Term Fiscal Framework Statement, forecast calculated according to the needs of the budget, ILO RAP calcula ons, 2015.
It must be noted that for the purpose of the RAP exercise in Mongolia, the cost of EPPs has been included under the revised projec on of social protec on expenditures, if a social protec on fl oor was to be implemented. If the cost of addi onal employment promo on measures is assumed, then the cost of social expenditures needed to reach a social protec on fl oor as a percentage of State revenues and grants would be 12.7 per cent instead of 13.6 per cent by 2020. Increasing social expenditures to complete a social protec on fl oor in Mongolia would have an
unavoidable cost on the already exis ng fi scal defi cit (fi gure 20). Projec ons of the MOF es mate a fi scal defi cit maintained below 3.0 per cent of GPD by 2020. Introducing a social protec on fl oor in Mongolia may entail a defi cit in the government budget reaching 4.2 per cent of GDP at current prices by 2020.
Several measures can be envisaged to resolve such a defi cit, for instance, budget realloca ons, changes in the tax structure, enforcement of tax collec on, revision of the parameters of the social insurance system, among other measures. In parallel to higher State’s spending on social protec on, the increase in social insurance contribu ons (covering all herders, self-employed and informal economy workers) would allow to resorb the recurrent defi cit of the social insurance fund, now fi nanced by the State’s budget.
Figure 20. Fiscal defi cit as a percentage of GDP at current prices, comparison between status quo in terms of social expenditures and the establishment of a social protec on fl oor
Source: NSO, MED, MOF, Medium-Term Fiscal Framework Statement, forecast calculated according to the needs of the budget, ILO RAP calcula ons, 2015.
As illustrated in fi gure 21, the cost of a social protec on fl oor would s ll represent a minor expense compared to the total expenditures of the State.
Figure 21. Cost of a social protec on fl oor compared to State revenues and expenditures (2005-20)
0
2000
4000
6000
8000
10000
12000
14000
16000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total State revenue and grant Social expenditures if status quo
Total State expenditure Cost of a SPF
Source: NSO, MED, MOF, Medium-Term Fiscal Framework Statement, forecast calculated according to the needs of the budget, ILO RAP calcula ons, 2015.
96
Nevertheless, the Government together with social partners and key stakeholders, notably representa ves of the benefi ciaries may consider reviewing which programmes would become redundant. For instance, introducing a universal old-age pension may overlap with certain social welfare benefi ts. Such arbitra on on the suspension of certain social benefi ts, services and subsidies will only result from an informed and eff ec ve dialogue with par es represen ng the benefi ciaries, and would require further analysis of the impact and the costs and benefi ts.
6.5. The need for coordina on and effi cient delivery of servicesEngagement in produc ve, remunerated and protected employment, including par cipa on to social insurance, is key to improve income security and access to social services. Missing links in these important dimensions of decent work prevent people from enjoying adequate employment protec on and social protec on provided by both na onal and interna onal instruments. This is par cularly relevant among vulnerable groups who o en must overcome challenges to realize their right to decent work and social protec on.
Achieving a social protec on fl oor in a country is essen al to mend the missing links and close gaps and thereby prevent people from falling into the vicious cycle of poverty. In 2012, the Government restructura on divided the por olio of social protec on and labour issues into two ministries, MOL and MPDSP. The reform aims at reinforcing policy planning and implementa on with the goal of providing every Mongolian with a decent job and fostering popula on development as priori es of the government agenda. Consequently, a number of specialized agencies and centres were established under each Ministry to implement policies and deliver services following a strict ver cal hierarchical structure. With such mul plica on of ins tu ons and ver cal repor ng, there is a strong need to foster coordina on mechanisms to be er integrate social protec on interven ons, notably social welfare programmes, with employment strategies. However, the exis ng coordina on mechanisms, par cularly horizontal ones among diff erent Ministries and agencies are s ll weak resul ng in low integra on across strategies that are complementary, nevertheless necessary to achieve a broader development objec ve. The same pa ern is observed at lower levels as well where the local administra on acts as coordinator of decentralized offi ces working under ver cal management of line ministries.
Due to the lack of coordina on or ineff ec ve coordina on, programmes are fragmented resul ng in overlapping and duplica on of benefi ts in the areas of social insurance and welfare while ins tu ons remain focused only on their jurisdic ons. Eff ec ve coordina on and building systema c linkages within and beyond the social protec on sector is needed to ensure that people are able to get social services and assistance in an integrated and inclusive manner.
There are a number of challenges for eff ec ve delivery of social services to diff erent groups in need in the unique environment of Mongolia with vast territory and dispersed popula on. In addi on to the exis ng ins tu onal se ngs, the establishment of one stop shops in aimag and certain soum centers since 200736, which is by nature a horizontal structure bringing together diff erent service lines in one place, has signifi cantly improved access to services, especially at soum levels. However, services, decision-making power and responsibili es could yet be more decentralized, with more decision-making power transferred from aimag to soum levels. In addi on, the one stop shops should be recognized as the single pla orm to deliver coordinated social and employment protec on services to the people by building clear and eff ec ve linkages among the implemen ng agencies and local administra on layers in terms of both ver cal and horizontal structures (van Langenhove, 2015).37
Finally, another area that requires further development and improvement is monitoring and evalua on, par cularly impact evalua on. Assessment of each social protec on programme impact is needed, to ensure that they contribute to poverty reduc on.
97
36 ILO, 2015: The one stop shop – The Mongolian experience for delivering social protec on and employment services (Ulaanbaatar, 2015) (video).
37 Thibault van Langenhove: Fact-fi ndings, local assessment report and recommenda ons for the further development of the OSS (working document Feb. 2015).
98
Annexes
99
Sche
me/
prog
ram
me
(Leg
al fr
amew
ork)
Ove
rvie
w o
f exi
s n
g pr
ovis
ions
An c
ipat
ed p
olic
y ch
ange
s/la
w re
form
s Ex
is n
g co
vera
ge
Uni
vers
al S
ocia
l Hea
lth In
sura
nce
(SHI
)1
(Law
on
Ci z
ens H
ealth
Insu
ranc
e (2
5 Ap
ril
2002
); La
w o
n He
alth
(25
May
201
1), A
r cl
es
15.1
, 23
and
24; L
aw o
n He
alth
Insu
ranc
e ad
opte
d on
29
Janu
ary
2015
, ent
erin
g in
to
forc
e on
1 Ju
ly 2
015)
Targ
et: A
ll M
ongo
lian
ci z
ens a
nd fo
reig
n re
siden
ts o
r sta
tele
ss p
erso
n.
The
sche
me
is m
anda
tory
for a
ll M
ongo
lian
ci z
ens (
Ar c
les 6
.1.1
–6.1
.11)
. Fo
reig
n re
siden
ts c
an b
e in
sure
d on
a v
olun
tary
bas
is (A
r cl
e 6.
2).
Leve
l of c
ontr
ibu
on:
Ca
tego
ry I:
Em
ploy
ees o
f the
Gov
ernm
ent a
nd b
usin
ess e
n
es a
re re
quire
d to
pay
4 p
er c
ent o
f the
ir m
onth
ly w
age
and
sala
ry (2
per
cen
t by
empl
oyer
, 2
per c
ent b
y th
e em
ploy
ee);
Cate
gory
II: H
erde
rs, u
nem
ploy
ed w
orke
rs a
nd st
uden
ts o
f the
voc
a o
nal
trai
ning
cen
tres
pay
MN
T670
per
mon
th;
Cate
gory
III:
Chi
ldre
n of
age
0–1
8, p
eopl
e w
ithou
t inc
ome
exce
pt fo
r tho
se
rece
ivin
g ol
d-ag
e, d
isabi
lity
and
surv
ivor
pen
sion
eith
er fr
om S
IGO
and
/or
soci
al w
elfa
re d
epar
tmen
t, st
uden
ts (u
nive
rsi
es a
nd c
olle
ges)
, par
ents
lo
okin
g a
er t
heir
babi
es u
n l
2 ye
ars o
ld, p
erso
nnel
of m
ilita
ry se
rvic
e (d
efen
ce, b
orde
r sec
urity
, pol
ice
and
emer
genc
y), a
nd c
i ze
ns in
volv
ed in
co
mm
unity
bas
ed w
elfa
re se
rvic
es w
hose
con
trib
u o
n is
en re
ly fu
nded
by
the
Stat
e. O
ther
targ
eted
gro
ups,
i.e.
old
er p
erso
ns, p
eopl
e w
ith d
isabi
li e
s,
child
ren
with
chr
onic
con
di o
n, p
eopl
e aff
ect
ed b
y do
mes
c v
iole
nce,
co
nvic
ts re
leas
ed fr
om c
orre
c o
nal s
ervi
ce, a
lcoh
ol a
nd d
rug
addi
cts,
ho
mel
ess,
sing
le m
othe
r/fa
ther
fam
ily, p
eopl
e aff
ect
ed b
y cu
rele
ss d
iseas
e,
poor
fam
ily m
embe
rs, c
i ze
ns m
igra
ted
loca
lly, a
nd p
aren
ts o
f chi
ldre
n w
ith
disa
bili
es,
are
also
requ
ired
to p
ay M
NT6
70, w
hich
is c
urre
ntly
bei
ng fu
lly
subs
idize
d an
d fi n
ance
d by
the
Hum
an D
evel
opm
ent F
und
(HDF
);
Cate
gory
IV:
Self-
empl
oyed
who
pay
1 p
er c
ent o
f the
ir re
fere
nce
inco
me
on
the
basis
of t
heir
tax
stat
emen
t to
tax
auth
ority
; and
Ca
tego
ry V
: For
eign
na
ona
ls an
d st
atel
ess p
eopl
e w
ho a
re re
ques
ted
to p
ay
6 pe
r cen
t of m
inim
um w
age
(MN
T8,4
24 m
onth
ly).
Bene
fi t p
acka
ge: O
ut-p
a e
nt a
nd in
-pa
ent
car
e se
rvic
es (p
rovi
ded
by
prim
ary
and
seco
ndar
y le
vel h
ospi
tals)
, day
car
e se
rvic
e (s
econ
dary
leve
l),
in-p
a e
nt se
rvic
e of
trad
i on
al m
edic
ine
clin
ics,
reha
bilit
ee c
are
prov
ided
by
sana
toria
and
pal
lia v
e an
d dr
ug d
iscou
nt; f
ree
chec
k-up
tes
ng
and
diag
nos
c se
rvic
e fo
r any
cas
e at
the
requ
est o
f the
insu
red,
not
exc
eedi
ng
MN
T56.
000
in e
ach
case
. Bo
nus:
In c
ase
an in
sure
d di
d no
t rec
eive
any
ben
efi t
from
SHI
Fun
d du
ring
last
36
mon
ths,
s/he
is e
ligib
le fo
r fre
e ch
eck-
up te
s n
g of
MN
T80,
000
each
ye
ar.
Bene
fi t c
eilin
g: M
NT1
,380
,000
per
insu
red
pers
on p
er y
ear.
Paym
ent m
echa
nism
s: S
HI D
epar
tmen
t of S
IGO
bas
ed o
n in
voic
es is
sued
by
serv
ice
prov
ider
s
Excl
uded
serv
ices
: prim
ary
heal
th c
are
serv
ice,
pre
gnan
cy a
nd d
eliv
ery
care
, tu
berc
ulos
is an
d ca
ncer
trea
tmen
t (di
rect
ly fi
nanc
ed b
y Go
vern
men
t bud
get)
1. M
PDSP
(also
invo
lved
MO
H, W
HO, G
IZ,
P4H)
laun
ched
the
long
term
stra
tegy
for
the
deve
lopm
ent o
f the
hea
lth in
sura
nce
of
Mon
golia
, 201
3-20
22, i
nclu
ding
: Cov
erag
e; H
I be
nefi t
pac
kage
; Qua
lity
of c
are
and
purc
hasin
g;
Gove
rnan
ce; H
I Org
aniza
on;
and
Priv
ate
Heal
th
Insu
ranc
e.
Sinc
e 19
95, A
DB h
as b
een
the
maj
or p
artn
er in
su
ppor
ng
the
Mon
golia
n he
alth
sect
or re
form
as
Hea
lth se
ctor
Dev
elop
men
t Pro
gram
me
(I, II
, III
and
IV).1
2. T
he L
aw o
n M
anda
tory
Hea
lth In
sura
nce
was
ad
opte
d on
29
Jan.
201
5. T
he la
w w
ill c
ome
into
fo
rce
from
1 Ju
ly 2
015
with
cer
tain
pro
visio
ns
from
1 Ja
nuar
y 20
16. M
ajor
cha
nges
incl
ude:
-The
am
ount
of g
over
nmen
t sub
sidize
d co
ntrib
u o
ns h
as in
crea
sed
(cur
rent
ly, m
onth
ly
cont
ribu
on
per s
ubsid
ized
pers
on -
MN
T670
a
mon
th, M
NT8
,040
a y
ear)
to 2
% o
f mon
thly
m
inim
um w
age
(MN
T3,8
40 a
mon
th o
r M
NT4
6,00
0 a
year
) -S
tude
nts h
ave
been
exc
lude
d fr
om th
e st
ate
subs
idy:
The
y w
ill m
ake
cont
ribu
ons
them
selv
es
at 1
% o
f min
imum
wag
e or
MN
T23,
000
a ye
ar
from
1 Ja
n. 2
016.
Thi
s yea
r’s c
ontr
ibu
ons
for
stud
ents
will
be
born
e by
the
gove
rnm
ent.
-Tra
nsfe
r of e
n tl
emen
ts to
fam
ily m
embe
rs: T
he
insu
red
who
did
not
use
his/
her e
n tl
ed a
mou
nt
of m
oney
to p
urch
ase
heal
th c
are
serv
ices
per
ye
ar c
an tr
ansf
er it
to o
ther
mem
bers
of h
is/he
r fa
mily
-Dru
gs p
resc
ribed
by
outp
a e
nt d
octo
rs o
f aim
ag
and
dist
rict h
ospi
tals
have
bec
ome
subj
ect t
o HI
di
scou
nts (
prev
ious
ly it
was
app
licab
le o
nly
at th
e pr
imar
y he
alth
car
e le
vel)
-The
ben
efi t
pack
age
to b
e pu
rcha
sed
by h
ealth
in
sura
nce
has e
xten
ded:
e.g
. can
cer a
nd p
allia
ve
care
, and
som
e ex
pens
ive
care
and
pro
sthe
c
appl
ianc
es.
Shar
e of
Insu
red
popu
la o
n to
th
e to
tal p
opul
a o
n: 9
7.8
per
cent
(2,7
61,7
00 p
eopl
e) a
t the
en
d of
201
3
Shar
e of
pop
ula
on
subs
idize
d co
ntrib
u o
n to
the
tota
l po
pula
on:
58.
7 pe
r cen
t (1
,658
,200
peo
ple)
in 2
013
Anne
x: so
cial
pro
tec
on fl o
or a
sses
smen
t mat
rixSo
cial
pro
tec
on fl o
or a
sses
smen
t mat
rix: G
uara
ntee
1- H
ealth
care
for a
ll re
side
nts
100
Heal
th c
are
serv
ice
deliv
ery1
(Law
on
Heal
th (5
May
201
1) A
rt. 1
5.1)
Prim
ary
leve
l: fi n
ance
d by
the
Stat
e bu
dget
: a) 1
,588
bag
h fe
ldsh
er (r
ural
); b)
271
soum
hos
pita
ls an
d 39
inte
r-sou
m h
ospi
tals
(15–
30 b
eds p
er so
ums)
; an
d c)
221
fam
ily h
ealth
cen
tres
(urb
an, p
rivat
e pr
ac c
es);
Seco
ndar
y le
vel:
10 p
er c
ent c
o-pa
ymen
t sys
tem
: 12
dist
rict h
ospi
tals
(200
–300
bed
s) a
nd 1
7 ai
mag
hos
pita
ls (1
00–5
00 b
eds)
and
thre
e m
ater
nity
ho
mes
;Te
r a
ry le
vel:
15 p
er c
ent c
o-pa
ymen
t sys
tem
: Fou
r reg
iona
l dia
gnos
c a
nd
trea
tmen
t cen
tres
(at a
imag
s), t
hree
cen
tral
hos
pita
ls, a
nd 1
1 sp
ecia
lized
ho
spita
ls
737,
500
peop
le re
ceiv
ed in
-pa
ent
serv
ice
of w
hich
374
,100
pa
id fr
om th
e he
alth
insu
ranc
e fu
nd fo
r MN
T72.
2 bi
llion
(201
3).
Heal
th e
xpen
ditu
re 3
% o
f GDP
an
d 6.
9% o
f the
tota
l Gen
eral
Go
vern
men
t Exp
endi
ture
Non
-con
trib
utor
y So
cial
Wel
fare
Allo
wan
ce
(per
man
ent c
are)
2 (L
aw o
n So
cial
Wel
fare
(19
Jan.
201
2) A
rt.
13.5
.7)
Qua
lifyi
ng c
ondi
ons
: A c
i ze
n ag
ed 1
6 an
d m
ore,
who
nee
ds p
erm
anen
t ca
re p
rovi
ded
by c
are
give
rs
Bene
fi ts:
MN
T60,
000
once
a q
uart
er
26,1
00 p
eopl
e in
201
2
Polic
y ga
psIm
plem
enta
on
issu
es
Heal
th ca
re se
rvic
es a
re d
ivid
ed in
to tw
o pa
ckag
es:
1. S
HI F
und
(onl
y 25
.1%
of t
he to
tal h
ealth
exp
endi
ture
s) a
nd;
2. Ta
x fu
nded
(sta
te b
udge
t) p
acka
geEx
tra
Paym
ent:
Cust
omer
’s ou
t-of-p
ocke
t (O
OP)
pay
men
ts h
as b
ecom
e a
maj
or p
robl
em w
hich
has
re
ache
d 41
% to
tal h
ealth
exp
endi
ture
and
95%
of O
OP
cons
ist o
f dru
g ex
pens
es a
mon
g po
or p
opul
a o
n.Ta
rge
ng:
The
Gov
ernm
ent s
ubsid
es n
ot ta
rget
ed e
noug
h. T
he a
mou
nt o
f con
trib
u o
n fo
r Hum
an
Deve
lopm
ent F
und
depe
nden
ts, h
erde
rs, s
elf-e
mpl
oyed
, une
mpl
oyed
and
info
rmal
eco
nom
y w
orke
rs is
no
t pro
perly
se le
d or
not
risk
adj
uste
d.Go
vern
ance
: Fun
c o
ns a
nd re
spon
sibili
es o
f HI s
take
hold
ers a
re fr
agm
ente
d an
d ov
erla
ppin
g.
Ins
tu o
n: T
here
is n
o le
gal e
nviro
nmen
t for
the
HI offi
ce to
car
ry o
ut re
spon
sibili
es o
f an
ac v
e pu
rcha
ser s
uch
as st
udyi
ng th
e ne
eds o
f the
insu
red,
defi
nin
g th
e he
alth
car
e se
rvic
es, s
elec
ng
heal
th
care
pro
vide
rs a
nd n
ego
a n
g pr
ices
and
tariff
s o
f hea
lth c
are
serv
ices
. Pa
ckag
e of
Ser
vice
: Hea
lth in
sura
nce
pack
age
does
not
com
plet
ely
cove
r ser
vice
nee
ded
by in
sure
d le
adin
g to
situ
a o
n w
here
the
insu
red
need
to p
ay fo
r the
serv
ice
that
are
om
i ed
.Eq
ualit
y of
trea
tmen
t: Th
ere
is sig
nifi c
ant d
iff er
ence
of m
onth
ly c
ontr
ibu
on
betw
een
Mon
golia
n na
ona
ls (M
NT6
70) a
nd n
on-n
a o
nals
(MN
T8,4
24)
Cove
rage
: The
cov
erag
e of
HI d
ecre
asin
g fr
om 1
00%
to 9
4% b
etw
een
2011
and
201
2 du
e to
the
fact
that
he
rder
s, st
uden
ts a
nd u
nem
ploy
ed w
ere
subs
idize
d by
the
Hum
an D
evel
opm
ent F
und
(HDF
) by
one
me
mea
sure
for t
heir
cont
ribu
on
fulfi
lmen
t. Co
llect
con
trib
u o
n: th
e cu
rren
t SI s
yste
m is
not
eff e
c v
e in
col
lec
ng
HI c
ontr
ibu
ons
from
the
info
rmal
se
ctor
and
her
ders
whe
re p
eopl
e ar
e ob
liged
to p
ay th
eir c
ontr
ibu
ons
by
them
selv
es.
Capa
city
: Soc
ial h
ealth
insu
ranc
e ac
vi
es a
re n
ot in
s tu
ona
lized
in a
n au
tono
mou
s ins
tu o
n an
d ha
ving
wea
k ca
paci
ty.
Bene
fi ts:
Fre
e Di
agno
s c
serv
ices
and
che
ck-u
p te
s n
g be
nefi t
(MN
T56,
000
each
cas
e an
d M
NT8
0,00
0 fo
r bon
us o
nce
in a
yea
r) is
ade
quat
e, b
ut th
ere
is ve
ry li
mite
d be
nefi c
iarie
s due
to in
suffi
cien
t ser
vice
de
liver
y an
d po
or a
cces
sibili
ty o
f pub
lic h
ospi
tals.
Priv
ate
hosp
ital d
iagn
osis
cent
res h
ave
not b
een
cont
acte
d w
ith S
HI F
und.
Q
ualit
y: In
suffi
cien
t inv
estm
ents
in p
ublic
hea
lth c
are
faci
li e
s tha
t res
ults
in d
ecre
asin
g he
alth
car
e se
rvic
es q
ualit
y an
d la
ck o
f wel
l-equ
ippe
d in
frast
ruct
ure
Serv
ice
qual
ity c
ontr
ol: H
ealth
car
e co
mpl
aint
syst
em d
oes n
ot w
ork
prop
erly
If th
e gr
ieva
nce
is no
t ad
dres
sed
in a
way
whi
ch sa
sfi e
s a c
onsu
mer
.SH
I Fun
d: H
uge
posi
ve
bala
nce
(equ
al to
95.
3% o
f the
ann
ual h
ealth
insu
ranc
e fu
nd re
venu
e in
201
2)
betw
een
the
heal
th in
sura
nce
fund
reve
nue
and
expe
nditu
res,
but
the
heal
th n
eeds
of t
he p
opul
a o
n ar
e no
t ful
ly m
et.
Key
reco
mm
enda
ons
Cos
ng
scen
ario
s
H1: E
xten
d eff
ec
vel
y he
alth
insu
ranc
e co
vera
ge to
segm
ents
of p
opul
a o
n no
t yet
cov
ered
by
the
heal
th in
sura
nce
sche
me,
by
subs
idizi
ng c
ontr
ibu
ons
.H2
: Inc
reas
e SH
I con
trib
u o
n fo
r cat
egor
y II
and
IV.
H3: D
evel
op m
etho
ds to
det
erm
inin
g SH
I con
trib
u o
n ra
te fo
r Cat
egor
ies I
I, III
and
IV.
H4: A
llow
op
on
for h
erde
rs to
pay
SHI
con
trib
u o
ns tw
ice
a ye
ar a
djus
ng
be e
r to
the
seas
onal
ity o
f the
ir in
com
e. P
rovi
de a
n in
cen
ve
to u
se th
e po
wer
of l
ocal
N
GO’s,
smal
l bus
ines
ses a
nd m
obili
zed
mer
chan
ts th
ose
who
col
lect
/buy
cash
mer
e, w
ool a
nd m
eat i
n ru
ral a
reas
. H5
: Gra
dual
ly e
xpan
d th
e be
nefi t
pac
kage
fund
ed b
y SH
I and
redu
ce th
e O
OP
expe
nses
.H6
: Tra
nsfe
r prim
ary
heal
th-c
are
serv
ices
, esp
ecia
lly so
um h
ospi
tal a
nd fa
mily
hea
lth c
entr
es fu
nded
by
the
Gove
rnm
ent b
udge
t int
o SH
I ben
efi t
pack
age
in o
rder
to
expa
nd S
HI c
over
age.
H7
: Int
rodu
ce g
ood
SHI g
over
nanc
e st
ruct
ural
cha
nge
plan
.H8
: Dev
elop
SHI
org
aniza
on
as a
c v
e pu
rcha
ser o
f hea
lth-c
are
serv
ice.
H9: R
einf
orce
mon
itorin
g ro
le o
f the
SHI
offi
ces i
n en
surin
g th
e qu
ality
of h
ealth
-car
e se
rvic
es.
H10:
Cre
ate
a he
alth
-car
e se
rvic
e co
ntro
l sys
tem
with
the
par
cipa
on
of th
e in
sure
d.H1
1: In
crea
se re
imbu
rsem
ent r
ate
for d
rugs
.
H1_1
: Inc
reas
e th
e co
ntrib
u o
n ra
te o
f Ca
tego
ry II
to M
NT1
,920
(1%
of m
inim
um
wag
e)H1
_2: F
ully
subs
idize
the
cont
ribu
on
rate
of
Cat
egor
y II
H1_3
(ADB
): Su
bsid
ize th
e co
ntrib
u o
n ra
te
for 1
5% o
f the
hou
seho
lds (
iden
fi ed
as
poor
thro
ugh
the
PMT
data
base
)H1
_4: S
tatu
s quo
H3
_1: I
ncre
ase
reim
burs
emen
t rat
e fo
r cu
rren
tly li
st o
f ess
en a
l dru
gs to
100
% fo
r al
l
101
H12:
Incr
ease
the
num
ber o
f sub
sidi
zed
med
icin
e, re
imbu
rsed
at 8
0% b
ased
on
curr
ent l
ist re
view
. H1
3: C
reat
e in
depe
nden
t hea
lth-c
are
serv
ice
com
plai
nt b
urea
u w
ith g
ood
proc
edur
es a
nd fo
rms.
H14:
Intr
oduc
e a
smar
t car
d re
gist
ra o
n sy
stem
that
cou
ld b
e ac
cept
ed a
t all
hosp
itals
for a
ny ty
pe o
f car
e co
vere
d by
the
SHI s
ervi
ce p
acka
ge.
H15.
Dev
elop
pub
lic-p
rivat
e pa
rtne
rshi
ps to
del
iver
hea
lth-c
are
serv
ices
, and
intr
oduc
e su
pple
men
tary
insu
ranc
es to
cov
er O
OP
expe
nses
. H1
6: Im
prov
e qu
ality
of h
ealth
-car
e se
rvic
es.
H17:
Incr
ease
yea
rly c
eilin
g of
hea
lth-c
are
pack
age
for p
eopl
e ov
er a
ge 7
0.
H18:
Ac
vat
e Su
b-N
a o
nal S
HI C
omm
i ee
s fun
c o
nali
es a
t all
leve
ls (e
ach
aim
ag a
lso h
as S
HI su
bcom
mi
ee u
nder
the
Sub
Na
ona
l SHI
) whi
ch h
as in
eff e
c v
e ac
vi
es.
H19:
Fin
ance
priv
ate
diag
nos
c la
bora
torie
s fro
m S
HI fu
nd in
ord
er to
dec
entr
alize
dia
gnos
c se
rvic
es in
pub
lic h
ospi
tals
and
impr
ove
acce
ssib
ility
of s
ervi
ces t
o th
e be
nefi c
iarie
s.
H20:
Som
e ex
pens
ive
heal
th-c
are
serv
ices
, for
inst
ance
, sur
gerie
s, d
iagn
os c
tes
ng
and
pros
the
cs,
shou
ld b
e fi n
ance
d by
SHI
Fun
d.
H21:
Est
ablis
h m
inim
um g
uara
ntee
of h
ealth
car
e se
rvic
e by
the
Stat
e bu
t not
onl
y lim
ited
prim
ary
heal
th c
are
serv
ices
as f
amily
hea
lth c
entr
es.
H22:
Pro
sthe
c fa
cili
es f
or d
isabl
ed a
nd e
lder
ly fr
om th
e So
cial
wel
fare
fund
also
shou
ld fi
nanc
e by
SHI
fund
. H2
3: E
nsur
e eq
ualit
y of
trea
tmen
t bet
wee
n na
ona
ls a
nd n
on-n
a o
nals
in te
rms o
f con
trib
u o
n
H3_2
: Int
rodu
ce n
ew e
ssen
al d
rugs
ap
plyi
ng c
urre
nt re
imbu
rsem
ent r
ate
betw
een
50 a
nd 8
0% fo
r all
H3_3
: Int
rodu
ce n
ew e
ssen
al d
rugs
and
in
crea
se re
imbu
rsem
ent r
ate
to 1
00%
for a
ll H6
_1: D
ecre
ase
OO
P ex
pens
es to
25%
H6
_1: D
ecre
ase
OPP
exp
ense
s to
30%
H6
_2: S
tatu
s quo
1 Ac
tors
invo
lved
incl
ude
MO
H, M
PDSP
, SIG
O a
nd S
ocia
l Hea
lth In
sura
nce
Sub-
Com
mi
ee; t
he re
spon
sible
bod
y is
MO
H.2
Invo
lves
MO
H, H
ealth
Dev
elop
men
t Cen
tre,
and
aim
ag le
vel h
ealth
dep
artm
ents
, MO
F, M
PDSP
, SIG
O; t
he re
spon
sible
bod
y is
MO
H. 2
Invo
lves
the
Soci
al W
elfa
re D
epar
tmen
t, M
PDSP
.3
h p
://p
4h-n
etw
ork.
net/
wp-
cont
ent/
uplo
ads/
2014
/01/
2013
_09_
03_M
ongo
lia_S
HI_
deve
lopm
ent_
long
-term
_str
ateg
y.pd
f
102
Sche
me/
prog
ram
me
(Leg
al fr
amew
ork)
Ove
rvie
w o
f exi
s n
g pr
ovis
ions
Exis
ng
cove
rage
Uni
vers
al C
hild
Mon
ey P
rogr
amm
e (C
MP)
1
(Law
on
Hum
an D
evel
opm
ent F
und
13 D
ec. 2
012)
, Ar
t.17.
1.5;
Gov
ernm
ent r
esol
u o
n N
o. 4
9, 2
012
and
Gove
rnm
ent r
esol
u o
n N
o. 7
0, 2
012)
Targ
et g
roup
: MN
T20,
000
($12
) per
mon
th to
all
child
ren
age
0-18
(eve
n ch
ildre
n un
der c
orre
c o
nal s
ervi
ce a
nd li
ving
abr
oad
are
elig
ible
to a
pply
) sin
ce O
ct. 2
012
Fina
ncin
g: M
iner
al re
sour
ce ta
x ac
cum
ulat
ed in
Hum
an D
evel
opm
ent F
und
(HDF
)2 . De
liver
y: C
MP
are
paid
to th
e fa
mili
es th
roug
h ba
nk tr
ansf
ers.
960,
300
child
ren
(nea
rly 1
00%
) co
vere
d an
d M
NT2
29.0
mill
ion
spen
t in
2013
Cont
ribut
ory
Surv
ivor
Ben
efi t3
(SI S
urvi
vor p
ensio
n)
(Law
on
Pens
ion
and
Bene
fi ts
prov
ided
by
the
Soci
al
insu
ranc
e (1
7 Ju
ne 1
994)
Ar
cles
12.
1.1,
12.
1.2,
12
.1.3
and
12.
2.3)
Targ
et g
roup
: 1) b
orn
and
adop
ted
child
ren(
appl
icab
le t
o a
child
bor
n a
er
fath
er’s
deat
h) u
nder
age
16
(19,
if a
stu
dent
) reg
ardl
ess
whe
ther
the
re is
ano
ther
per
son
as le
gal g
uard
ian/
care
r; 2)
gra
ndch
ildre
n an
d hi
s/he
r yo
unge
r sis
ters
and
bro
ther
s un
der
age
16
who
hav
e no
oth
er p
erso
n le
gally
res
pons
ible
for
mai
nten
ance
; 3)
gra
ndch
ildre
n an
d hi
s/he
r yo
unge
r sis
ters
and
bro
ther
s, w
ho
wer
e de
ceas
ed,
born
inca
paci
tate
d or
inca
paci
tate
d pr
ior
a a
inin
g ag
e 16
; an
d 4)
a c
hild
who
doe
sn’t
get
any
alim
ony
from
his/
her
pare
nts
by ju
dici
al d
ecisi
on b
e tr
eate
d lik
e hi
s or
her
ow
n ch
ild in
the
eve
nt o
f de
ath
of h
is or
her
ste
p fa
ther
or
step
mot
her
Fina
ncin
g:
Man
dato
ry:
Soci
al
Insu
ranc
e Pe
nsio
n Fu
nd
(incl
uded
in
th
e 14
%
cont
ribu
on
for
bene
fi ts
of
the
soci
al
insu
ranc
e Pe
nsio
n Fu
nd);
Vo
lunt
ary:
10
%
of
the
refe
renc
e in
com
e go
ing
to
the
soci
al
insu
ranc
e Pe
nsio
n fu
ndBe
nefi t
: 1)
one
dep
ende
nt: 5
0% o
f the
am
ount
cor
resp
ondi
ng to
a fu
ll pe
nsio
n fo
r ol
d ag
e ba
sed
on th
e pe
nsio
nabl
e ea
rnin
gs o
f the
in
sure
d; 2
) tw
o de
pend
ents
: 75%
; or
3) t
hree
or
mor
e de
pend
ents
: 100
%. H
owev
er, t
he m
inim
um le
vel o
f pen
sion
mus
t be
equ
al t
o 50
–100
% o
f min
imum
wag
e (s
et a
t MN
T192
,000
in 2
013)
dep
endi
ng o
n th
e nu
mbe
r of d
epen
dent
s
22,5
00 c
hild
ren
in
2013
Non
-con
trib
utor
y Su
rviv
or B
enefi
t4
(Soc
ial w
elfa
re S
urvi
vor p
ensio
n)
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
Art
. 12.
1.4)
Qua
lifyi
ng c
ondi
ons
: Chi
ldre
n ag
e 0–
18 w
ho lo
st th
eir b
read
-win
ner (
one
or b
oth)
who
nev
er c
ontr
ibut
ed to
the
SI.
Bene
fi ts:
MN
T126
,500
per
mon
th.
14,0
72 c
hild
ren
in
2013
Non
-con
trib
utor
y So
cial
Wel
fare
Allo
wan
ces (
twin
ba
by c
are)
5
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
Art
. 13.
5.5)
Qua
lifyi
ng c
ondi
ons
: a c
i ze
n or
hou
seho
ld ra
ising
up
and
taki
ng c
are
of tw
ins (
trip
les a
nd q
uadr
uple
ts).
Bene
fi ts:
twin
= M
NT1
,000
,000
; and
trip
les o
r qua
drup
lets
= M
NT3
,000
,000
for e
ach
child
one
m
e 30
0 ch
ildre
n in
201
3
Non
-con
trib
utor
y So
cial
Wel
fare
Allo
wan
ces (
singl
e pa
rent
hea
ded
fam
ily) 5
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
Art
. 12.
1.5
and
Gove
rnm
ent R
esol
u o
n N
o. 8
1, 2
012)
Qua
lifyi
ng c
ondi
ons
: Chi
ldre
n in
a fa
mily
hea
ded
by a
sing
le m
othe
r age
45
or m
ore
(or f
athe
r age
50
or m
ore)
with
at l
east
four
ch
ildre
n be
low
age
18.
Be
nefi t
s: M
NT1
26,5
00 p
er m
onth
.
52 in
201
3
Non
-con
trib
utor
y So
cial
Wel
fare
Allo
wan
ce (f
amily
su
ppor
t)5
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
, Art
. 13.
5.8)
Qua
lifyi
ng c
ondi
ons
: sin
gle
mot
hers
/fat
hers
with
3 o
r mor
e ch
ildre
n un
der a
ge 1
4;
Bene
fi ts:
MN
T120
,000
onc
e a
year
1,20
0 pe
rson
s in
2012
Non
-con
trib
utor
y So
cial
Wel
fare
Allo
wan
ces (
child
ad
op o
n) 5
(Law
on
Soci
al W
elfa
re (J
an 1
9 20
12) A
rt. 1
3.2.
1)
Qua
lifyi
ng c
ondi
ons
: A c
i ze
n w
ho a
dopt
ed o
r too
k le
gal g
uard
ians
hip
of d
oubl
e or
phan
chi
ld.
Bene
fi ts:
MN
T48,
000
per m
onth
un
l ag
e 16
(age
18
if th
e ch
ild is
a st
uden
t in
high
scho
ol).
Trai
ning
on
care
taki
ng a
nd n
ursin
g sk
ills
1,70
0 in
201
3
Soci
al p
rote
c o
n fl o
or a
sses
smen
t mat
rix: G
uara
ntee
2-C
hild
ren
103
Non
-con
trib
utor
y So
cial
Wel
fare
Allo
wan
ces
(per
man
ent c
are)
5
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
Art
. 13.
5.6)
Qua
lifyi
ng c
ondi
ons
: A c
hild
und
er a
ge 1
6 w
ho n
eeds
per
man
ent c
are
Bene
fi ts:
MN
T60,
000
per m
onth
.N
A
Non
-con
trib
utor
y So
cial
Wel
fare
Allo
wan
ces (c
hild
ca
re) 5
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
Art
. 13.
2.2)
Qua
lifyi
ng c
ondi
ons
: A c
i ze
n pr
ovid
ing
fam
ily c
are,
spec
ifi ed
in A
rt. 2
5.5
of th
e Fa
mily
Law
, to
a ch
ild v
ic m
of p
hysio
logi
cal a
nd
phys
ical
vio
lenc
e, w
ho is
in n
eed
for p
rote
c o
n ac
cord
ing
to th
e Ar
t. 74
of t
he F
amily
Law
. Be
nefi t
s: M
NT4
8,00
0 pe
r mon
th u
n l
age
16 (a
ge 1
8 if
the
child
is a
stud
ent i
n hi
gh sc
hool
). Tr
aini
ng o
n ca
reta
king
and
nur
sing
skill
s
88 p
eopl
e
Non
-con
trib
utor
y So
cial
Wel
fare
Allo
wan
ces
(disa
bled
chi
ld c
are)
5
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
Art
. 13.
2.4)
Qua
lifyi
ng c
ondi
ons
: A c
i ze
n ta
king
car
e of
disa
bled
chi
ld u
nder
med
ical
con
trol
, req
uirin
g pe
rman
ent c
are,
and
such
Be
nefi t
s: M
NT4
8,00
0 pe
r mon
th. T
rain
ing
on c
aret
akin
g an
d nu
rsin
g sk
ills
6,30
0 ch
ildre
n in
20
12
Non
-con
trib
utor
y So
cial
Wel
fare
Allo
wan
ces
(allo
wan
ces a
nd a
ssist
ance
) 5
(Law
on
Soci
al S
ecur
ity o
f Peo
ple
with
Disa
bilit
y (8
Dec
. 200
5), A
rt. 5
.1.2
and
5.1
.4; G
over
nmen
t Re
solu
on
No.
153
, 201
2)
Qua
lifyi
ng c
ondi
ons
: Rei
mbu
rsem
ent o
f pro
sthe
c c
orre
c o
n an
d re
habi
lita
on
cost
for c
hild
ren
with
disa
bili
es,
up
to a
ge 1
8 Be
nefi t
s: 1
00%
cos
t of p
rost
he c
cor
rec
on
in th
e co
untr
y, on
ce in
a th
ree
year
s;
1,80
0 ch
ildre
n in
20
13
Qua
lifyi
ng c
ondi
ons
: Fin
anci
al su
ppor
t for
chi
ldre
n w
ith d
isabi
li e
s up
to a
ge 1
8, w
ho is
not
en
tled
to re
ceiv
e al
low
ance
from
the
soci
al in
sura
nce
Fund
, Be
nefi t
s: 1
00%
cos
t of p
urch
ased
or m
ade
spec
ial c
are
inst
rum
ents
like
ort
hopa
edic
tool
s, w
heel
chai
rs a
nd o
ther
equ
ipm
ent m
ade
in
the
coun
try,
onc
e in
thre
e ye
ars
9,00
0 ch
ildre
n in
20
13
Soci
al W
elfa
re S
ervi
ce (c
omm
unity
bas
ed se
rvic
e fo
r ch
ildre
n) 5
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
Ar
cles
17.
1.1,
18
.1 a
nd 1
8.2.
3)
Targ
et g
roup
: Chi
ldre
n w
ith c
hron
ic c
ondi
on
Serv
ices
: Cou
nsel
ling;
Reh
abili
ta o
n; Te
mpo
rary
acc
omm
oda
on
and
care
; Day
car
e se
rvic
e; H
ome
base
d ca
re a
nd se
rvic
e;
Fina
ncin
g: L
ocal
Gov
ernm
ent b
udge
t (sin
ce 2
013)
Fund
ing
proc
ess:
Ser
vice
cos
ts a
re e
s m
ated
by
Soci
al w
elfa
re u
nit o
f aim
ag, d
istric
t and
cap
ital c
ity o
n th
e ba
sis o
f pro
posa
l iss
ued
by
Live
lihoo
d Su
ppor
t Cou
ncil
of re
spec
ve
soum
and
kho
roo
and
be su
bmi
ed to
the
Loca
l Gov
erno
r Offi
ce.
830
child
ren
Soci
al W
elfa
re S
ervi
ce (i
ns tu
ona
l car
e se
rvic
e) 5
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
Art
. 17.
1.2)
Scop
e: C
hild
ren
with
chr
onic
con
di o
n, a
chi
ld sp
ecifi
ed in
par
agra
ph 2
5.5
of F
amily
Law
, and
a d
isabl
ed c
hild
und
er a
ge 1
8 re
quiri
ng
perm
anen
t car
e an
d; T
riple
ts a
nd q
uadr
uple
ts (e
tc.)
up to
age
4, w
ith a
par
enta
l per
miss
ion
to b
e ca
red
in sp
ecia
lized
car
e ho
me
at th
e st
ate
expe
nses
;Fi
nanc
ing:
Loc
al G
over
nmen
t bud
get (
since
201
3)Th
e Go
vern
or o
f the
aim
ag, d
istric
t and
cap
ital c
ity m
akes
a d
ecisi
on to
enr
ol a
chi
ld in
car
e se
rvic
e.
NA
Cash
allo
wan
ce fo
r liv
elih
ood
impr
ovem
ent
(Pre
siden
al d
ecre
e N
o. 4
2 (2
9 M
arch
201
3);
Gove
rnm
ent r
esol
u o
n N
o. 1
68 (1
1 M
ay 2
013)
)
Targ
et g
roup
: Mem
bers
of r
eind
eer h
erdi
ng fa
mili
es li
ving
in Ta
iga
(eth
nic
min
ority
com
mun
ity)
Bene
fi t: M
onth
ly a
llow
ance
at 5
0% o
f the
min
imum
subs
isten
ce le
vel (
MSL
) to
a ch
ild, a
t 100
%to
an
adul
t (st
ar n
g fr
om 1
June
201
3)
339
peop
le (b
oth
child
ren
and
adul
ts )
of 9
4 fa
mili
es in
201
3
Kind
erga
rten
with
free
mea
l6
(Law
on
Educ
a o
n (6
June
200
2); L
aw o
n Pr
esch
ool
Educ
a o
n (2
3 M
ay 2
008)
)
Targ
et g
roup
: Chi
ldre
n ag
e 2–
5 ye
ars.
In 2
013/
14 1
93,7
00 c
hild
ren
wer
e in
volv
ed in
pre
scho
ol e
duca
on,
90.
1% o
f who
m a
re in
pub
lic
free
of c
harg
e ki
nder
gart
ens.
Pre
scho
ol c
over
age
incr
ease
d by
4.5
% in
201
2 an
d by
5.5
% in
201
3.
Mea
l: Th
e Go
vern
men
t pro
vide
s a m
eal a
llow
ance
of M
NT1
,650
($0.
90) f
or d
ay c
are
and
MN
T2,4
00 ($
1.40
) for
full
boar
d ch
ild p
er d
ay
in p
ublic
kin
derg
arte
ns.
Pres
choo
l cov
erag
e 77
.7%
in 2
013/
14
scho
ol y
ear.
In
2013
/14
scho
ol y
ear
193,
700
child
ren
of w
hom
174
,600
co
vere
d by
764
stat
e-ow
ned
kind
erga
rten
s
104
Free
edu
ca o
n, p
rimar
y an
d se
cond
ary6
(Con
s tu
on
of M
ongo
lia (1
3 Ja
n 19
92) A
rt. 1
6.7;
La
w o
n Ed
uca
on
(6 Ju
ne 2
002)
Art
. 6.2
)
Targ
et g
roup
: Prim
ary
and
seco
ndar
y ed
uca
on
and
boar
ding
for a
ll ch
ildre
n. P
rimar
y ed
uca
on-
5 ye
ars,
bas
ic e
duca
on-
9 ye
ars a
nd
basic
gen
eral
-12
year
s, a
nd th
e st
ate
prov
ide
it fr
ee o
f cha
rge
In 2
013/
14 sc
hool
ye
ar 5
10,2
00
stud
ents
in 7
56
seco
ndar
y sc
hool
s,
481,
500
of w
hom
w
ere
in 6
28 p
ublic
fr
ee sc
hool
s..E
quiv
alen
cy e
duca
on
prog
ram
me7
Law
on
Educ
a o
n (6
June
200
2) A
rt. 3
.1.7
; Non
-fo
rmal
Edu
ca o
n N
a o
nal P
rogr
amm
e (G
over
nmen
t re
solu
on
No.
116
, 199
7) M
inist
eria
l ord
er N
o. 3
62
(9 O
ct. 2
007)
Targ
et g
roup
: Chi
ldre
n ov
er a
ge 1
0 an
d ad
ults
who
nev
er h
ad sc
hool
ing
or d
ropp
ed o
ut o
f sch
ool
, Be
nefi t
s: F
ree
prim
ary
and
seco
ndar
y ed
uca
on,
with
cur
ricul
um a
dapt
ed to
nee
ds o
f tar
get g
roup
s 1
,800
chi
ldre
n dr
oppe
d ou
t of
scho
ol in
201
3-14
(d
rop-
out r
ate
is 0.
4 ) I
n 20
14, 1
0,02
0 co
vere
d (3
,600
pr
imar
y, 4,
200
basic
an
d 2,
300
com
plet
e se
cond
ary
educ
a o
n) A
llow
ance
for p
aren
ts re
sidin
g at
soum
cen
ter8
Pare
nts c
an re
ceiv
e an
allo
wan
ce fo
r res
idin
g at
the
soum
cen
tre
to st
ay n
ext t
o th
eir c
hild
ren
at th
e ki
nder
gart
en o
r sch
ool.
E-
educ
a o
n “O
ne L
apto
p pe
r Chi
ld”
2008
–201
5 Pr
ogra
mm
e7
(Gov
ernm
ent r
esol
u o
n N
o. 9
2, 2
008)
Targ
et g
roup
: all
Stud
ents
of g
rade
s 2–5
of s
econ
dary
scho
ol w
ill h
ave
a co
nnec
ted
lapt
op b
y en
d of
201
515
000
stud
ents
Scho
ol d
orm
itory
9
(Law
on
Educ
a o
n (6
June
200
2) A
rt. 4
3.2.
1)
Targ
et g
roup
: Orp
hans
, poo
r stu
dent
s or s
tude
nts u
nabl
e to
a e
nd sc
hool
bec
ause
of t
he d
istan
ce is
sue
(pub
lic sc
hool
s) (f
or p
rimar
y an
d se
cond
ary)
. Be
nefi t
s: S
tude
nts p
rovi
ded
with
supp
ort t
o re
side
in th
e do
rmito
ries o
f sec
onda
ry sc
hool
or v
oca
ona
l tra
inin
g ce
ntre
free
of c
harg
e.
In 2
013,
514
dor
mito
ries.
Fo
od: T
he G
over
nmen
t is r
espo
nsib
le fo
r mea
l exp
ense
s of M
NT2
,315
per
chi
ld p
er d
ay
34,7
04 c
hild
ren
in
2013
-14
scho
ol y
ear;
Dorm
itory
cov
erag
e in
dex:
94.
8 pe
r cen
t of
the
subm
i ed
re
ques
ts a
re fu
lfi lle
d;
All c
hild
ren
in ru
ral
and
peri-
urba
n ar
eas.
Scho
ol lu
nch
prog
ram
me9
(Gov
ernm
ent r
esol
u o
n N
o. 1
94, 2
006)
Targ
et G
roup
: St
uden
ts o
f gra
des 1
–5 o
f pub
lic g
ener
al se
cond
ary
scho
ols,
MN
T1,5
00 fo
r dai
ly c
ost o
f lun
ch23
9,30
0 ch
ildre
n in
20
13-1
4
Scho
ol te
xtbo
oks
Gove
rnm
ent r
esol
u o
n N
o. 1
92 o
n M
aste
r pla
n to
de
velo
p Ed
uca
on
of M
ongo
lia fo
r 200
6–15
(16
Augu
st 2
006)
; Min
ister
ial O
rder
(MEC
S) N
o. 1
31
(200
9), C
abin
et M
ee n
g M
inut
e N
o. 2
8 (2
009)
Targ
et g
roup
: Vul
nera
ble
child
ren
of g
ener
al se
cond
ary
scho
ols.
Bene
fi t: f
ree
text
book
s for
all
child
ren
in p
rimar
y ed
uca
on;
and
vul
nera
ble
chi
ldre
n in
seco
ndar
y an
d up
per s
econ
dary
edu
ca o
n.34
3,70
0 ch
ildre
n in
20
13
Com
pens
a o
ns fo
r tra
nspo
rta
on
(Law
on
Educ
a o
n (6
June
200
2) A
rt. 4
3.2.
3;
Gove
rnm
ent R
esol
u o
n
Targ
et g
roup
: The
tran
spor
ta o
n ta
riff f
or st
uden
ts w
ho st
udy
in d
iff er
ent a
imag
and
city
, com
pens
ate
both
side
tariff
tw
ice
a ye
ar.
Colle
ge a
nd u
nive
rsity
stud
ents
can
use
free
of c
harg
e pu
blic
tran
spor
ta o
n w
ith th
eir s
tude
nt v
isa c
ard
durin
g w
orki
ng d
ays o
f stu
dy
sess
ion.
103,
000
child
ren
and
stud
ents
in 2
013
Soci
al D
evel
opm
ent S
ervi
ce10
(Law
on
Soci
al W
elfa
re (2
9 Ja
n. 2
012)
, Art
. 20)
Targ
et g
roup
: Chi
ld o
f a p
oor h
ouse
hold
; chi
ld o
f a d
isabl
ed p
erso
n; d
isabl
ed c
hild
; dou
ble
or h
alf o
rpha
n; a
chi
ld o
f hom
eles
s; c
hild
in a
fo
ster
car
e ho
me;
chi
ld re
leas
ed fr
om p
rison
.Ed
uca
on
Supp
ort S
ervi
ces a
ppro
ved
join
tly b
y th
e M
OE
and
MPD
SP a
nd it
s fun
ding
allo
cate
d in
the
budg
et p
or o
lio o
f the
rele
vant
lin
e m
inist
ries.
Se
rvic
e de
liver
able
: Con
cess
iona
l rat
e fo
r sta
one
ry, t
ext b
ooks
and
scho
ol u
nifo
rm, i
f the
chi
ld is
enr
olle
d in
pre
scho
ol o
r sec
onda
ry
scho
ol;
105
Na
ona
l stu
dent
gra
nt9
(Law
on
Fina
ncin
g Hi
gher
edu
ca o
n an
d St
uden
ts
Soci
al g
uara
ntee
(9 Ju
ly 2
011)
, Art
. 8.1
Gov
ernm
ent
Reso
lu o
n N
o. 7
1 (7
Mar
ch 2
014)
)
Targ
et g
roup
: All
regu
lar c
ours
e st
uden
ts o
f col
lege
s and
uni
vers
i es
of a
ll ow
ners
hip,
pro
vide
d th
at b
oth
appl
ying
stud
ents
and
un
iver
si e
s hav
e sa
sfi e
d th
e sp
ecifi
ed c
riter
ia b
y th
e Go
vern
men
t res
olu
on
No.
71
of 2
014.
S p
end
was
uni
vers
al u
n l
the
seco
nd
half
of 2
014.
The
cha
nge
was
intr
oduc
ed b
y an
am
endm
ent t
o th
e La
w o
n Fi
nanc
ing
High
er E
duca
on
and
Stud
ents
Soc
ial g
uara
ntee
in
Nov
embe
r 201
3.
Bene
fi t: M
NT7
0 00
0 pe
r mon
th fo
r 10
mon
ths
Qua
lifyi
ng c
ondi
ons
: Apa
rt fr
om b
eing
a re
gula
r cou
rse
stud
ent o
f any
type
of u
nive
rsity
or c
olle
ge (b
oth
publ
ic a
nd p
rivat
e) o
ther
cr
iteria
are
hav
ing
com
plet
ed a
t lea
st 1
0–12
cre
dit h
ours
with
a g
rade
poi
nt a
vera
ge a
t lea
st 3
.0–3
.5. U
nive
rsi
es a
lso m
ust m
eet
accr
edita
on
and
othe
r crit
eria
.
122,
000
in 2
014
Voca
ona
l edu
ca o
n(L
aw o
n Ed
uca
on
(3 M
ay 2
002)
Art
. 43.
2.2
and
Art.4
3.2.
10; L
aw o
n Vo
ca o
nal E
duca
on
and
Trai
ning
(13
Feb.
200
9))
Targ
et g
roup
: Chi
ldre
n an
d yo
ung
peop
le w
ho c
ompl
eted
bas
ic e
duca
on
Bene
fi t: F
ree
voca
ona
l edu
ca o
n w
ith m
onth
ly s
pen
d of
MN
T 70
,000
for a
ll st
uden
ts (b
oth
publ
ic a
nd p
rivat
e) a
nd fr
ee b
oard
ing
for
thos
e in
nee
d (p
rivat
e)
42,7
98 st
uden
ts
Food
Sta
mp
Prog
ram
me10
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
Art
. 22,
M
inist
eria
l Ord
er (M
OF
and
MPD
SP) N
o. A
/95/
2012
)
Targ
et g
roup
: Chi
ldre
n liv
ing
in p
oor a
nd v
ery
poor
hou
seho
lds
Bene
fi t: M
NT5
,000
per
mon
th p
er c
hild
. Fro
m 1
Jan.
201
5 th
e am
ount
was
incr
ease
d to
MN
T6,5
00 p
er m
onth
Q
ualif
ying
con
di o
ns: B
eing
a m
embe
r of p
oor h
ouse
hold
s ide
n fi
ed a
s liv
ing
stan
dard
scor
e of
PM
T ba
sed
data
base
. Aro
und
the
low
est 1
0% o
f hou
seho
lds i
n te
rms o
f con
sum
p o
n w
ill b
e co
vere
d in
201
5.
50,3
71 c
hild
ren
age
0–18
in 2
013
Oth
er p
rogr
amm
es: F
ree
vita
min
A a
nd D
Su
pple
men
t, Fo
ster
car
e an
d Ch
ild p
rote
c o
n N
P et
c.11
Targ
eted
, but
cov
erag
e is
limite
d, m
ostly
impl
emen
ted
in a
n ad
hoc
man
ner
An c
ipat
ed p
olic
y ch
ange
s/la
w re
form
sM
PDSP
has
dra
ed
a ne
w la
w fo
r im
prov
ing
child
soci
al p
rote
c o
n:
1. M
NT8
0,00
0 pe
r mon
th to
mot
her/
fath
er w
ho lo
oks a
er c
hild
ren
up to
age
2, o
r if t
win
s up
to a
ge 3
(110
,000
par
ents
will
be
cove
red
at a
cos
t of M
NT1
05.6
bill
ion
annu
ally
) 2.
MN
T120
,000
per
mon
th to
mot
her/
fath
er w
ho lo
oks a
er h
is/he
r thi
rd b
aby
up to
age
2 (2
5,00
0 pa
rent
s).
3. Ta
x re
lief f
or M
NT5
00,0
00 o
nce
a ye
ar fo
r tho
se p
aren
ts;
4. 5
0% o
f the
soci
al in
sura
nce
cont
ribu
on
for m
othe
rs; a
nd
5. F
ood
coup
on fo
r MN
T15,
000
Dra
Chi
ld ca
re la
w: T
he d
ra l
aw o
n Ch
ild c
are
is be
ing
disc
usse
d at
the
Parli
amen
t. It
is in
tend
ed to
targ
et c
hild
ren
age
2–6
who
are
ou
t of k
inde
rgar
tens
(Cur
rent
ly 5
6,00
0 ch
ildre
n). C
hild
car
e ce
ntre
s up
to 2
0 ch
ildre
n m
ee n
g th
e st
anda
rds s
pecifi e
d by
the
law
can
ha
ve v
aria
ble
cost
for e
very
chi
ld, a
t the
leve
l of p
ublic
kin
derg
arte
ns, f
rom
the
publ
ic b
udge
t. It
is as
sum
ed th
at o
ver 6
,000
cen
tres
will
be
est
ablis
hed.
Polic
y ga
psIm
plem
enta
on
issu
es1.
CM
P in
i a
ves
are
o e
n ba
sed
on p
oli
cal d
ecisi
ons,
not
evi
denc
e-ba
sed
2. L
evel
of b
enefi
t is
not a
dequ
ate
for s
choo
l a e
ndan
ce: u
nifo
rm a
nd te
xtbo
oks
3. T
he le
vel o
f soc
ial i
nsur
ance
pen
sion
bene
fi ts a
djus
ted
in a
d-ho
c m
anne
r, w
ithou
t ind
exa
on
on infl a
on.
4. A
cces
sibili
ty: E
nrol
men
t inc
reas
ed a
cros
s the
kin
derg
arte
ns b
ut th
ese
enro
lmen
t inc
reas
es g
ener
ally
not
am
ong
child
ren
from
low
-in
com
e ho
useh
olds
thos
e w
ho p
resu
mab
ly w
ould
ben
efi t
the
mos
t fro
m k
inde
rgar
ten
mea
l pro
vide
d fr
ee o
f cos
t.5.
Kin
derg
arte
n m
eal q
ualit
y is
s ll
low
6. C
hild
ren
cann
ot a
cces
s bas
ic so
cial
serv
ices
, and
serv
ice
deliv
ery
is in
suffi
cien
t, fo
r ins
tanc
e, la
ck o
f sch
ools
and
kind
erga
rten
s, a
nd
poor
infra
stru
ctur
e an
d se
rvic
es fo
r chi
ldre
n w
ith sp
ecia
l nee
ds.
7. T
he d
efi n
i on
of i
nval
id c
hild
ren
does
not
mee
t the
requ
irem
ent o
f inc
lusio
ns (m
edic
al, s
ocia
l, an
d so
on)
whe
re c
hild
ren
cann
ot
acce
ss se
rvic
es a
nd b
enefi
ts e
n tl
ed b
y so
cial
pro
tec
on
legi
sla o
ns.
8. C
hild
ren
disc
iple
at t
he m
onas
terie
s are
not
follo
win
g fo
rmal
edu
ca o
n cu
rric
ulum
s.
9. W
ater
sani
ta o
n an
d hy
gien
e (W
ASH)
and
suffi
cien
t san
itary
inst
alla
on
for c
hild
ren
also
bei
ng c
onsid
erab
le is
sue.
Mos
t par
ents
lack
kn
owle
dge
and
skill
s for
acc
essin
g to
serv
ices
and
wor
k w
ith th
eir c
hild
ren.
10
. Pen
al o
f the
lack
resp
onsib
ili e
s are
ver
y lo
w w
hen
pare
nts d
ischa
rge
thei
r par
enta
l obl
iga
ons
. 11
. Lim
ited
empl
oym
ent p
olic
ies f
ocus
ed o
n fa
mili
es a
nd c
hild
-frie
ndly
wor
kpla
ces.
12
. Chi
ldre
n w
ithou
t par
enta
l con
trol
(par
ents
wor
king
abr
oad)
nee
d to
be
cove
red
by th
e so
cial
pro
tec
on
sche
me
as w
ell.
1. R
equi
red
supp
or n
g do
cum
ents
to a
pply
the
CMP
(loss
birt
h ce
r fi c
a o
n an
d pa
rent
s ID)
is th
e m
ain
com
plic
a o
n iss
ue in
rura
l are
a.2.
App
lica
on
at th
e ai
mag
cen
tre.
Nee
d to
intr
oduc
e e-fi l
e.3.
The
re a
re g
ood
infra
stru
ctur
e st
anda
rds f
or p
eopl
e w
ith d
isabi
li e
s, b
ut
impl
emen
ta o
n of
stan
dard
s is w
eak.
4.
Lac
k of
serv
ices
for c
hild
ren’
s spa
re
me
or v
acan
cy.
5. B
udge
t allo
ca o
n fo
r com
mun
ity b
ased
wel
fare
is n
ot d
eliv
erin
g to
the
targ
eted
gro
ups n
or is
it d
eliv
erin
g pr
oper
serv
ices
.6.
The
re is
no
cohe
rent
info
rma
on
deliv
ery
syst
em.
7. S
choo
l soc
ial w
orke
rs a
re n
ot w
orki
ng c
lose
ly w
ith o
r a e
ndin
g to
st
uden
ts’ n
eeds
.8.
Dor
mito
ry se
rvic
es a
re o
f poo
r qua
lity.
9. N
ot su
ffi ci
ent p
rofe
ssio
nal s
ocia
l car
e an
d ps
ycho
logi
cal s
ervi
ces.
106
Reco
mm
enda
ons
/ Ke
y re
com
men
da o
nsCo
s n
g Sc
enar
ios
C1: A
sses
smen
t of t
he p
rogr
amm
e im
pact
is n
eede
d, to
ens
ure
that
it d
oes c
ontr
ibut
e to
pov
erty
redu
c o
n.C2
: Kee
p Ch
ild M
oney
Pro
gram
me
as it
is (e
nsur
e its
uni
vers
ality
by
law
), an
d in
dex
the
bene
fi t (M
NT2
0,00
0 pe
r mon
th) o
n th
e co
nsum
p o
n pr
ice
inde
x (C
PI).
C3: I
ncre
ase
the
leve
l of b
enefi
ts fo
r sm
all c
hild
ren.
C4: I
ncre
ase
the
soci
al in
sura
nce
surv
ivor
ben
efi t
leve
l and
inde
x on
the
CPI.
C5: R
educ
e th
e qu
alifi
ca o
ns fo
r ben
efi ts
focu
sed
on si
ngle
mot
hers
or f
athe
rs w
ith m
any
child
ren.
C6: P
ay m
ore
a e
n o
n to
chi
ldre
n an
d yo
uth
with
disa
bili
es.
The
Gov
ernm
ent r
ecog
nize
s the
nee
d to
ens
ure
an e
nabl
ing
envi
ronm
ent g
uara
ntee
ing
child
ren
with
di
sabi
li e
s the
equ
al ri
ght t
o de
velo
pmen
t and
pro
tec
on.
C7
: Com
bine
and
impr
ove
inco
me
supp
ort a
nd so
cial
incl
usio
n pr
ogra
mm
es fo
r chi
ldre
n w
ith d
isabi
li e
s, th
roug
h th
e de
velo
pmen
t of a
c v
i es
and
serv
ices
ada
pted
to
them
, in
par
cula
r ens
ure
acce
ss to
kin
derg
arte
n an
d pr
e-sc
hool
edu
ca o
n.
C8: I
mpr
ove
soci
al in
clus
ion
obje
c v
es o
f pro
gram
mes
for c
hild
ren
with
dis
abili
ty, f
or in
stan
ce su
ch a
s ren
ova
on
of fa
cili
es t
o en
sure
acc
ess t
o so
cial
serv
ices
in
par
cul
ar k
inde
rgar
ten
and
scho
ol e
duca
on.
C9
: Exp
and
alte
rna
ve
pres
choo
l pro
gram
mes
for c
hild
ren
with
disa
bili
es a
nd c
hild
ren
livin
g an
d w
orki
ng o
n th
e st
reet
. C1
0: In
trod
uce
an a
ddi
onal
inco
me
guar
ante
e fo
r tea
cher
s who
wor
king
with
chi
ldre
n w
ith d
isabi
li e
s.
C11:
Est
ablis
h re
habi
lita
on
cabi
nets
in sc
hool
s whi
ch a
re st
udyi
ng c
hild
ren
with
spec
ifi c
need
s.
C12:
Cre
ate
new
wor
k po
si o
n in
scho
ol a
s an
assis
tanc
e te
ache
r who
abl
e to
wor
k w
ith c
hild
ren
with
disa
bili
es.
C1
3: E
xpan
d se
rvic
es m
ainl
y fo
cuse
d on
chi
ldre
n w
ith c
hron
ic c
ondi
ons
. C1
4: F
or y
outh
in w
orki
ng a
ge (a
bove
age
16)
nee
d to
est
ablis
h pr
ogra
mm
es th
at u
n l
wea
k in
cen
ve
to in
tegr
ate
labo
ur m
arke
t and
be
soci
ally
and
eco
nom
ical
ly in
clud
ed,
whi
le c
on n
uing
rece
ivin
g go
vern
men
ts su
ppor
t (se
e re
com
men
da o
ns u
nder
Gua
rant
ee 3
). C1
5: P
rovi
de jo
bs to
par
ents
who
se c
hild
ren
invo
lved
in w
orst
form
s of c
hild
labo
ur.
C16:
Impr
ove
and
ensu
re e
nviro
nmen
ts fo
r dev
elop
men
t and
righ
t to
educ
a o
n of
the
herd
er-fa
mili
es c
hild
ren.
C17:
Incr
ease
and
inde
x th
e m
eal a
llow
ance
in k
inde
rgar
ten
and
pre-
scho
ol to
the
CPI.
A ne
w g
over
nmen
t pol
icy
reco
mm
ends
to su
bsid
ize it
onl
y at
50%
. C1
8: In
trod
uce
supe
rvis
ory
mec
hani
sms f
or b
e e
r saf
ety
and
qual
ity o
f mea
ls in
kin
derg
arte
n an
d sc
hool
s.C1
9: In
crea
se th
e nu
mbe
r of k
inde
rgar
tens
to e
nsur
e th
at th
e re
mai
ning
25%
(am
ong
vuln
erab
le g
roup
s) ca
n al
so a
cces
s to
thes
e ed
uca
on
serv
ices
. C2
0: P
rovi
de te
xtbo
ok a
nd sc
hool
uni
form
com
pens
a o
ns to
chi
ldre
n of
low
-inco
me
fam
ilies
. C2
1: In
trod
uce
diff e
rent
mea
l tar
iff fo
r dor
mito
ry st
uden
ts d
epen
ding
on
thei
r age
spec
ifi c.
Sc. 1
.1: I
ndex
ed C
MP
on infl a
on
Sc. 1
_1 (A
DB):
CMP
only
for t
he 1
5%
hous
ehol
ds id
en fi
ed a
s poo
r thr
ough
th
e PM
TC3
_1: S
tatu
s-qu
oC3
_2: F
ood
tariff
MN
T1,6
40 a
nd
MN
T2,4
00 in
dexe
d on
infl a
on
C3_3
: Foo
d ta
riff i
ncre
ased
to
MN
T2,0
00 fo
r day
car
e an
d M
NT4
,000
fo
r ful
l boa
rd (a
nd in
dexe
d)C3
_4: F
ood
tariff
inc
reas
ed to
M
NT2
,000
for d
ay c
are
and
MN
T4,0
00
for f
ull b
oard
, and
subs
idize
d on
ly a
t 50
%
1 Ac
tors
invo
lved
incl
ude
MPD
SP, M
OF,
Na
ona
l Reg
istra
on
Auth
ority
and
Gen
eral
Offi
ce fo
r Soc
ial W
elfa
re S
ervi
ces (
GOSW
S).
2 N
ote:
Law
on
2014
Hum
an D
evel
opm
ent F
und
Budg
et, t
otal
exp
endi
ture
is 3
12.0
bill
ion
MN
T of
whi
ch:
Child
mon
ey 2
40.0
bill
ion
MN
T, He
alth
insu
ranc
e co
ntrib
u o
n 12
.0 b
illio
n M
NT,
and
inve
stm
ent f
or n
ew b
uild
ing
of C
hild
ren’
Dev
elop
men
t Cen
tre
for
5 di
stric
t nam
ely,
in S
ongi
nokh
airk
han,
Bay
ango
l, Kh
an-U
ul, C
hing
elte
i and
Bay
anzu
rkh.
3
Invo
lves
SIG
O, M
PDSP
. 4
Invo
lves
Soc
ial W
elfa
re A
genc
y, M
PDSP
.5
Invo
lves
GO
SWS,
MPD
SP.
6 In
volv
es th
e M
inist
ry o
f Edu
ca o
n.
7 In
volv
es th
e M
inist
ry o
f Edu
ca o
n, N
a o
nal C
ente
r Lite
racy
Edu
ca o
n.
8 In
volv
es th
e So
cial
Wel
fare
Dep
artm
ent,
MPD
SP. 9
Invo
lves
the
Min
istry
of E
duca
on.
9 In
volv
es th
e M
inist
ry o
f Edu
ca o
n.
10 In
volv
es M
OE
and
MPD
SP. 1
0 In
volv
es M
PDSP
, MO
F, GO
SWS
and
Food
& N
utri
on
Prog
ram
me
(ADB
). 11
Invo
lves
MPD
SP, M
OH,
MO
E.
107
Soci
al p
rote
c o
n fl o
or A
sses
smen
t mat
rix: G
uara
ntee
3a-
Wor
king
age
(Soc
ial s
ecur
ity)
Sche
me/
prog
ram
me
(Leg
al fr
amew
ork)
Ove
rvie
w o
f exi
s n
g pr
ovis
ions
An c
ipat
ed p
olic
y ch
ange
s/la
w re
form
sEx
is n
g co
vera
ge
Man
dato
ry c
ontr
ibut
ory
wor
king
inju
ry a
nd
occu
pa o
nal d
isea
se in
sura
nce
(Law
on
Soci
al In
sura
nce
(31
May
199
4) A
rt. 4
; Law
on
Wor
king
inju
ry, o
ccup
a o
nal d
iseas
e Pe
nsio
n,
Benefi t
s and
Pay
men
ts p
rovi
ded
by In
sura
nce,
7
June
199
4)
Targ
et g
roup
Art
. 4.2
: Wor
kers
(bot
h M
ongo
lians
and
fore
igne
rs o
r sta
tele
ss p
erso
n) in
Mon
golia
n bu
sines
s en
es
, NGO
s and
oth
er o
rgan
iza o
ns (A
rt. 4
.2.1
); w
orke
rs (b
oth
Mon
golia
ns a
nd fo
reig
ners
or s
tate
less
per
son)
in
fore
ign
busin
ess e
n
es, N
GOs,
PM
Us a
nd in
tern
a o
nal o
rgan
iza o
ns in
Mon
golia
n te
rrito
ry (A
rt. 4
.2.2
); ci
vil
serv
ants
and
pub
lic w
orke
rs (A
rt. 4
.2.3
); an
d la
bour
con
trac
ted
Mon
golia
n w
orke
rs a
broa
d (A
rt. 4
.2.4
) Co
ntrib
u o
n: c
over
ed o
nly
by e
mpl
oyer
s by
1%, 2
% a
nd 3
% (d
epen
ding
on
wor
king
con
di o
n) o
f pay
roll
sala
ry
(bet
wee
n m
inim
um w
age
and
ten
mes
the
min
imum
wag
e)
Bene
fi ts:
disa
bilit
y pe
nsio
n (r
epla
cem
ent r
ate
is eq
ual t
o pe
rcen
tage
of c
apac
ity lo
st),
surv
ivor
pen
sion
(rep
lace
men
t rat
e is
50%
-100
% re
late
d to
the
num
ber o
f dep
ende
nts)
, sic
knes
s ben
efi ts
(100
% fo
r max
imum
180
w
orki
ng d
ays a
yea
r) a
nd c
ompe
nsa
on
for r
ehab
ilita
on
(if in
sure
d lo
st c
apac
ity o
f 30%
and
abo
ve, e
n tl
ed to
co
mpe
nsa
ons
as f
ollo
ws:
1) p
rost
he c
faci
li e
s 100
% fi
rst
me,
50%
seco
nd c
ase;
2) s
anat
oriu
m tr
eatm
ent;
and
3) so
cial
insu
ranc
e pe
nsio
n fu
nd c
ontr
ibu
on)
; Cr
iteria
: No
min
imum
requ
ired
of y
ears
of s
ervi
ce
MPD
SP is
pla
nnin
g to
refo
rm th
e So
cial
In
sura
nce
Pack
age
Law
in 2
015-
2016
766,
815
peop
le
insu
red
in 2
013;
In
201
3, u
nder
bo
th m
anda
tory
an
d vo
lunt
ary
sche
mes
: 5,8
00
peop
le re
ceiv
ed a
di
sabi
lity
pens
ion,
60
0 re
ceiv
ed a
su
rviv
or p
ensio
n w
hile
1,0
00
rece
ived
sick
ness
be
nefi t
s for
te
mpo
rary
loss
of
wor
king
cap
acity
Volu
ntar
y co
ntrib
utor
y w
orki
ng in
jury
and
oc
cupa
ona
l dis
ease
insu
ranc
e
(Law
on
Soci
al In
sura
nce
(31
May
199
4) A
rt. 4
; Law
on
Wor
king
inju
ry, o
ccup
a o
nal d
iseas
e Pe
nsio
n,
Benefi t
s and
Pay
men
ts p
rovi
ded
by In
sura
nce
(7
June
199
4))
Targ
et g
roup
Art
. 4.3
: Ind
ivid
uals
othe
r tha
n Ar
t. 4.
2 no
t wor
king
in th
e fo
rmal
sect
or a
nd u
nem
ploy
ed p
eopl
e.
Cont
ribu
on:
1%
of t
he re
fere
nce
inco
me,
by
insu
red
only.
Ref
eren
ce in
com
e is
decl
ared
on
a vo
lunt
ary
basis
: be
twee
n m
inim
um w
age
and
ten
mes
the
min
imum
wag
e. R
epla
cem
ent r
ate
depe
nds o
n le
vel o
f inc
apac
ity:
10%
inca
paci
ty, 1
0% in
com
e re
plac
emen
t. Be
nefi t
s: D
isabi
lity
pens
ion,
surv
ivor
pen
sion,
com
pens
a o
n du
e to
wor
king
acc
iden
t and
occ
upa
ona
l dise
ases
. Cr
iteria
: Not
dep
ende
nt o
n ye
ars o
f ser
vice
.
147,
100
peop
le
insu
red
in 2
013
Man
dato
ry c
ontr
ibut
ory
allo
wan
ce in
sura
nce:
M
ater
nity
, sic
knes
s and
fune
ral
(Law
on
Pens
ion
and
Bene
fi ts p
rovi
ded
by S
ocia
l in
sura
nce
(7 Ju
ne 1
994)
)
Targ
et g
roup
: Art
. 4.2
(Con
trac
ted
empl
oym
ent a
nd c
ivil
serv
ice
wor
kers
) Co
ntrib
u o
n: E
mpl
oyer
0.5
% a
nd e
mpl
oyee
0.5
% o
f the
pay
roll
sala
ry.
Mat
erni
ty:
Qua
lifyi
ng c
ondi
ons
: At l
east
12
mon
ths o
f con
trib
u o
ns, o
f whi
ch si
x co
n n
uous
ly p
rior t
o ta
ke m
ater
nity
leav
e.
Repl
acem
ent r
ate:
100
% o
f las
t 12
mon
th a
vera
ge w
age
for a
per
iod
of fo
ur m
onth
s. T
he a
llow
ance
shal
l cal
cula
ted
base
d on
the
wor
king
da
ys o
f a c
alen
dar y
ear.
For e
xam
ple,
bef
ore
birt
h M
NT2
80,0
00 a
nd M
NT2
80,0
00 a
er b
irth
(in c
ase
of m
inim
um w
age)
;Si
ckne
ss:
Qua
lifyi
ng c
ondi
ons
: At l
east
thre
e m
onth
s of c
ontr
ibu
on
prio
r to
take
a si
ckne
ss le
ave
due
to o
rdin
ary
dise
ase
and
non-
occu
pa o
nal
acci
dent
s.
Repl
acem
ent r
ate:
the
bene
fi t is
cal
cula
ted
on th
e ba
sis o
f the
ave
rage
wag
e of
last
thre
e m
onth
con
nui
ng e
mpl
oym
ent,
depe
ndin
g on
yea
rs o
f ser
vice
: up
to 5
yea
rs, 5
0%; 5
–14
year
s, 5
5%; a
nd m
ore
than
15
year
s, 7
5% fo
r max
imum
66
wor
king
day
s in
case
of o
rdin
ary
dise
ase
(but
in c
ase
of c
ance
r or t
uber
culo
sis fo
r max
. 136
day
s ). F
or e
xam
ple,
in c
ase
of 5
yea
rs o
f con
trib
u o
n at
min
imum
wag
e an
d 66
da
ys o
f a si
ckne
ss=
MN
T232
,957
or 1
32 d
ays o
f a si
ckne
ss e
qual
to M
NT4
65,9
15;
Fune
ral g
rant
: MN
T620
,000
766,
815
peop
le
insu
red
in 2
013;
In
201
3; fo
r bot
h m
anda
tory
and
vo
lunt
ary:
45,
700
mot
hers
rece
ived
m
ater
nity
ben
efi ts
an
d 10
4,40
0 w
orke
rs re
ceiv
ed
sickn
ess b
enefi
ts,
fune
ral g
rant
s wer
e pa
id to
12,
400
peop
le in
201
3
Volu
ntar
y co
ntrib
utor
y al
low
ance
insu
ranc
e:
Mat
erni
ty, s
ickn
ess a
nd fu
nera
l
(Law
on
Pens
ion
and
Bene
fi ts p
rovi
ded
by th
e So
cial
in
sura
nce
(7 Ju
ne 1
994)
)
Targ
et g
roup
: Art
. 4.3
Con
trib
u o
n: 1
% o
f the
refe
renc
e in
com
e (b
ut in
com
e m
ust n
ot b
e be
low
min
imum
wag
e).
Mat
erni
tyQ
ualif
ying
con
di o
ns: S
ame
as A
rt. 4
.2 a
s abo
ve.
Repl
acem
ent r
ate:
70%
of l
ast 1
2 m
onth
ave
rage
inco
me
for a
per
iod
of fo
ur m
onth
s;
Bene
fi t: F
or e
xam
ple,
bef
ore
birt
h: M
NT1
98,0
00, a
nd a
er b
irth:
MN
T198
,000
. In
case
of m
inim
um w
age
the
bene
fi t p
rovi
ded
for e
ach
day
of w
ork.
Sick
ness
ben
efi t
and
fune
ral g
rant
: Sam
e as
Art
. 4.2
as a
bove
147,
100
peop
le
insu
red
in 2
013
108
Man
dato
ry c
ontr
ibut
ory
Une
mpl
oym
ent I
nsur
ance
(Law
on
Soci
al In
sura
nce
(31
May
199
4), A
r cl
e 4.
2;
Law
on
Une
mpl
oym
ent B
enefi
ts P
rovi
ded
by th
e So
cial
Insu
ranc
e Fu
nd (5
July
199
4))
Targ
et g
roup
: Art
. 4.2
Co
ntrib
u o
n: E
mpl
oyer
s 0.5
% a
nd e
mpl
oyee
0.5
% o
f the
pay
roll
sala
ry.
Repl
acem
ent r
ate:
For
a d
ura
on
of 7
6 w
orki
ng d
ays,
ben
efi t
is ca
lcul
ated
bas
ed o
n th
e av
erag
e w
age
of la
st th
ree
mon
th c
on n
uing
em
ploy
men
t, an
d re
plac
emen
t rat
e va
ries w
ith th
e ye
ars o
f ser
vice
: up
to 5
yea
rs, 4
5%; 5
-10
year
s, 5
0%; 1
0-15
yea
rs, 6
0%; a
nd m
ore
than
15
yea
rs, 7
0%.
Min
imum
ben
efi t:
not
less
than
75%
of t
he m
inim
um w
age;
Cr
iteria
: At l
east
24
mon
ths o
f con
trib
u o
ns, o
f whi
ch n
ine
con
nuo
usly
prio
r to
the
unem
ploy
ed;
Redu
ced
bene
fi t: I
f em
ploy
ee te
rmin
ated
his/
her l
abou
r con
trac
t on
own
ini
a v
e an
d di
smiss
ed fr
om jo
b du
e to
bre
akin
g th
e la
bour
di
scip
line
man
y m
es o
r sev
erel
y th
en b
enefi
t w
ould
be
prov
ided
for 3
6 w
orki
ng d
ays:
Co
ntrib
u o
n di
scou
nt: W
hen
empl
oyer
and
an
empl
oyee
did
not
take
ben
efi ts
from
une
mpl
oym
ent i
nsur
ance
fund
for fi
ve
year
s co
nsist
ently
, the
une
mpl
oym
ent i
nsur
ance
con
trib
u o
n is
decr
ease
d by
10%
in th
e ne
xt y
ear.
766,
815
peop
le
insu
red
in 2
013;
In
201
3, 1
5,80
0 em
ploy
ees
rece
ived
un
empl
oym
ent
insu
ranc
e be
nefi t
s.
Man
dato
ry c
ontr
ibut
ory
disa
bilit
y be
nefi t
insu
ranc
e (D
B)
(Law
on
Pens
ion
and
Bene
fi ts p
rovi
ded
by th
e So
cial
in
sura
nce
(7 Ju
ne 1
994)
)
Targ
et g
roup
: Art
. 4.2
(Con
trac
ted
empl
oym
ent a
nd c
ivil
serv
ice
wor
kers
)
Cont
ribu
on:
Em
ploy
er 7
% a
nd e
mpl
oyee
7%
of t
he p
ayro
ll sa
lary
as p
art o
f the
SI P
ensio
n fu
nd.
Qua
lifyi
ng c
ondi
ons
: The
insu
red
pers
on w
ho h
as lo
st n
ot le
ss th
an 5
0% o
f his
capa
city
for w
ork
perm
anen
tly fo
r not
less
than
20
year
s of
serv
ice
or a
t lea
st 3
yea
rs o
ut o
f fi v
e, im
med
iate
ly p
rece
ding
the
date
of c
omm
ence
men
t of i
nval
id.
Repl
acem
ent r
ate:
if in
sure
d pe
rson
lost
his
capa
city
for 7
5% o
r mor
e, re
plac
emen
t rat
e w
ould
be
45%
(sam
e as
OA
pens
ion)
of p
ayro
ll sa
lary
and
incr
ease
d by
1.5
% o
f wag
es fo
r eac
h ye
ar a
ddi
onal
to 2
0 ye
ars.
If in
sure
d lo
st h
is ca
paci
ty n
ot le
ss th
an 5
0%, p
ensio
n w
ould
ca
lcul
ated
at t
he ra
te o
f pro
por
on to
his
wag
es a
s 45%
or m
ore.
But
bot
h fu
lly a
nd p
ar a
lly d
isabi
lity
pens
ions
shou
ld n
ot b
e le
ss th
an
soci
al in
sura
nce
old
age
min
imum
pen
sion
(as M
NT1
95,0
00 o
r MN
T230
,000
);
Dete
rmin
a o
n of
inva
lidity
: The
per
cent
age
of a
n in
sure
d pe
rson
’s lo
ss o
f cap
acity
and
its l
engt
h ar
e de
term
ined
by
the
Med
ical
labo
ur
Accr
edita
on
Com
miss
ion
766,
815
peop
le
insu
red
in 2
013
Volu
ntar
y co
ntrib
utor
y di
sabi
lity
bene
fi t in
sura
nce
(DB)
(Law
on
Pens
ion
and
Bene
fi ts p
rovi
ded
by th
e So
cial
in
sura
nce
(7 Ju
ne 1
994)
)
Targ
et g
roup
: Art
. 4.3
(her
ders
and
info
rmal
eco
nom
y w
orke
rs a
nd u
nem
ploy
ed p
erso
n)
Cont
ribu
on:
incl
uded
in 1
0% o
f the
indi
vidu
al’s
refe
renc
e in
com
e go
ing
to th
e so
cial
insu
ranc
e pe
nsio
n fu
nd.
Qua
lifyi
ng c
ondi
ons
and
Ben
efi ts
: Sam
e as
abo
ve a
s Art
. 4.2
77,8
00 p
eopl
e in
sure
d in
201
3
Man
dato
ry c
ontr
ibut
ory
surv
ivor
ben
efi t
insu
ranc
e (D
B)
(Law
on
Pens
ion
and
Bene
fi ts p
rovi
ded
by th
e So
cial
in
sura
nce,
7 Ju
ne 1
994)
Targ
et g
roup
: Art
. 4.2
(Con
trac
ted
empl
oym
ent a
nd c
ivil
serv
ice
wor
kers
) Co
ntrib
u o
n: E
mpl
oyer
7%
and
em
ploy
ee 7
% o
f the
pay
roll
sala
ry a
s par
t of t
he S
I Pen
sion
fund
. Be
nefi t
s: if
thre
e or
mor
e de
pend
ents
, 100
% o
f ref
eren
ce in
com
e; tw
o de
pend
ents
= 7
5%, a
nd o
ne d
epen
dent
= 5
0% b
ut m
inim
um
pens
ion
mus
t be
equa
ls to
min
imum
old
age
pen
sion
Crite
ria: N
ot le
ss th
an 2
0 ye
ars f
or th
e se
rvic
e or
insu
red
at le
ast t
hree
yea
rs o
ut o
f fi v
e
77,8
00 p
eopl
e in
sure
d in
201
3
Volu
ntar
y co
ntrib
utor
y su
rviv
or b
enefi
t in
sura
nce
(DB)
(Law
on
Pens
ion
and
Bene
fi ts p
rovi
ded
by th
e So
cial
in
sura
nce
(7 Ju
ne 1
994)
)
Targ
et g
roup
: Art
. 4.3
(her
ders
and
info
rmal
eco
nom
y w
orke
rs o
r une
mpl
oyed
per
son)
Co
ntrib
u o
n: 1
0% o
f the
refe
renc
e in
com
e as
par
t of t
he S
I Pen
sion
fund
. Be
nefi t
s: sa
me
as a
bove
; Min
imum
pen
sion:
fully
230
,000
MN
T, pa
r al
ly 1
95.0
00 M
NT;
Cr
iteria
: sam
e ab
ove
and
at le
ast 3
yea
rs o
ut o
f fi v
e.
77,8
00 p
eopl
e in
sure
d in
201
3
109
Man
dato
ry a
nd v
olun
tary
con
trib
utor
y su
rviv
or a
nd
disa
bilit
y be
nefi t
insu
ranc
e (N
DC)
(Law
On
Indi
vidu
al P
ensio
n In
sura
nce
Cont
ribu
on
Acco
unt (
1 Ju
ly 1
999)
)
Surv
ivor
pen
sion
:Sc
ope:
All
cont
ract
em
ploy
ees b
orn
a e
r Jan
uary
1, 1
960.
Yea
rs o
f ser
vice
: 15
year
s of s
ervi
ce a
nd c
ontr
ibu
ons
Ra
te: 4
0% m
onth
ly a
vera
ge w
age
in th
e la
st th
ree
year
s for
one
dep
ende
nt in
crea
sed
by 1
0% p
er e
ach
mem
ber o
ver t
wo
and
mor
e. B
ut
pens
ion
shou
ld n
ot e
xcee
d 60
% m
onth
ly a
vera
ge w
age.
Fi
nanc
ing:
Incl
uded
in th
e 14
% o
f con
trib
u o
n to
the
soci
al in
sura
nce
pens
ion
fund
.
767,
000
cont
ribut
ors t
o th
e m
anda
tory
sc
hem
e; 1
47,0
00
cont
ribut
ors t
o th
e vo
lunt
ary
sche
me,
in
201
3.
Disa
bilit
y pe
nsio
n:
Scop
e: sa
me
as a
bove
Ra
te: T
otal
inva
lidity
= m
onth
ly a
vera
ge w
age
in th
e la
st th
ree
year
s*60
%; P
ar a
l inv
alid
ity =
(mon
thly
ave
rage
wag
e in
the
last
thre
e ye
ars*
60%
) * (%
of l
oss o
f cap
acity
for w
ork)
Non
-con
trib
utor
y M
ilita
ry P
ensio
n Be
nefi t
Sch
eme:
ol
d-ag
e, d
isabi
lity
and
surv
ivor
s1
(Law
on
Pens
ion
and
Bene
fi ts o
f Mili
tary
Ser
vice
Pe
rson
nel (
13 Ju
ne 1
994)
Art
. 4.1
)
Scop
e: A
rt. 4
.1 c
adet
, priv
ate,
sold
ier,
serg
eant
, fi rs
t-ser
gean
t, offi
cer
, com
miss
ary,
gene
ral o
f Arm
ed fo
rces
, Def
ense
, Pol
ice,
Bor
der
Secu
rity,
Corr
ec o
nal s
ervi
ce, I
ntel
ligen
ce, E
mer
genc
y se
rvic
e an
d Cr
imin
alis
cs
Qua
lifyi
ng c
ondi
ons
: 1)
if p
erso
nnel
lost
his
capa
city
in a
ba
le fi
eld,
pea
ceke
epin
g op
era
on,
a e
ndin
g sp
ecia
l or e
mer
genc
y op
era
ons
etc
.; 2)
ac
vi
es o
ther
than
1);
3) il
lnes
s not
rela
ted
to w
ork
du e
s; a
nd
4) lo
st c
apac
ity d
urin
g de
mob
ilizin
g fr
om a
rmy
Repl
acem
ent r
ate:
Ca
ses 1
and
2) 1
0% lo
ss o
f cap
acity
, 10%
inco
me
repl
acem
ent;
if ov
er 1
0% lo
ss o
f cap
acity
, pro
por
on to
the
degr
ee o
f the
loss
of w
orki
ng
abili
ty a
nd p
lus 1
0%–1
5% a
ddi
onal
ben
efi t
calc
ulat
ed o
f pay
roll
sala
ry;
Case
3) I
f 75%
and
mor
e lo
st c
apac
ity, b
enefi
t w
ould
be
60%
of r
efer
ence
inco
me
and
incr
ease
d by
1.5
% o
f wag
es fo
r eac
h ye
ar a
ddi
onal
to
20
year
s. If
par
al l
oss o
f cap
acity
, rep
lace
men
t rat
e w
ould
be
60%
of i
ncom
e; a
nd
Case
4) R
epla
cem
ent r
ate
10%
–60%
of p
rior i
ncom
e of
an
arm
y or
min
imum
wag
e.Fi
nanc
ing:
Sta
te b
udge
t but
del
iver
ed th
roug
h so
cial
insu
ranc
e fa
cili
es
Guar
ante
e: T
he p
ensio
n sh
ould
not
be
less
than
75%
of m
inim
um w
age
Mili
tary
Pen
sion
Bene
fi t S
chem
e: o
ld-a
ge, d
isabi
lity
and
surv
ivor
s
(Law
on
Pens
ion
and
Bene
fi ts o
f Mili
tary
Ser
vice
Pe
rson
nel (
13 Ju
ne 1
994)
Art
. 4.1
)
Scop
e: A
rt. 4
.1.
Qua
lifyi
ng c
ondi
ons
: Bre
ad-w
inne
r die
d sa
me
abov
e 1,
2, 3
and
4
Rate
: Thr
ee o
r mor
e de
pend
ents
-100
% o
f ref
eren
ce in
com
e; 2
=75
%, a
nd 1
= 5
0% a
nd p
lus 1
0-15
% a
ddi
onal
ben
efi t.
Mili
tary
Ben
efi t
sche
me:
Sic
knes
s, M
ater
nity
and
Fu
nera
l
(Law
on
Pens
ion
and
Bene
fi ts o
f Mili
tary
Ser
vice
Pe
rson
nel (
13 Ju
ne 1
994)
Art
. 4.1
)
Scop
e: A
rt. 4
.1.
Bene
fi ts:
M
ater
nity
: 100
% o
f las
t 12
mon
th a
vera
ge w
age
for a
per
iod
of 4
mon
ths.
Si
ckne
ss: d
epen
ding
on
year
s of s
ervi
ce- u
p to
fi ve
yea
rs-5
0% o
f wag
e, 5
-14
year
s 60%
and
mor
e th
an 1
5 is
80%
; Fu
nera
l gra
nt: M
NT6
20,0
00
Non
-con
trib
utor
y So
cial
Wel
fare
Ben
efi t:
Disa
bilit
y2
(Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12) A
rt. 1
2.1.
3 an
d Go
vern
men
t res
olu
on
No.
81,
201
2)
Qua
lifyi
ng c
ondi
ons
: Res
iden
ts a
ged
year
s of 1
6 an
d m
ore
who
lost
his/
her w
orki
ng c
apac
ity fo
r 50%
and
ove
r and
who
has
nev
er
cont
ribut
ed to
the
soci
al in
sura
nce
sche
me.
Be
nefi t
s: M
NT1
26,5
00 p
er m
onth
.
44,2
09 p
eopl
e in
20
13
110
Non
-con
trib
utor
y So
cial
Wel
fare
Ben
efi t:
Dw
arf
indi
vidu
al2
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
Art
. 12.
1.2
and
Gove
rnm
ent r
esol
u o
n N
o. 8
1, 2
012)
Qua
lifyi
ng c
ondi
ons
: A d
war
f ind
ivid
ual a
ged
16 y
ears
and
mor
e Be
nefi t
s: M
NT1
26,5
00 p
er m
onth
.16
4 pe
ople
in 2
013
Non
-con
trib
utor
y So
cial
wel
fare
Allo
wan
ce:
Indi
vidu
al m
embe
r of h
ouse
hold
2
(Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12) A
rt. 1
3.3)
Qua
lifyi
ng c
ondi
ons
: a c
i ze
n-m
embe
r of h
ouse
hold
sele
cted
from
hou
seho
lds w
ith li
ving
stan
dard
low
er th
an th
e po
vert
y lin
e th
en a
nd
that
are
ent
ered
into
a c
entr
al d
atab
ase
of h
ouse
hold
s
Bene
fi ts:
MN
T48,
000
per m
onth
.
Prox
y m
eans
te
s n
g pr
ogra
mm
e. N
ot
yet i
mpl
emen
ted
Non
-con
trib
utor
y So
cial
wel
fare
Allo
wan
ce:
Emer
genc
y as
sista
nce2
(Law
on
Soci
al W
elfa
re (1
9 Ja
n. 2
012)
Art
. 13.
5.1)
Qua
lifyi
ng c
ondi
ons
: hou
seho
lds b
ecam
e ho
mel
ess o
r who
se h
ome
beca
me
unsu
itabl
e fo
r liv
ing
or lo
st li
velih
ood
due
to su
dden
ac
cide
nt, d
isast
er-d
zuds
(har
sh w
inte
rs) o
r oth
er u
nfor
esee
n re
ason
s;
Bene
fi ts:
MN
T1,2
00,0
00 o
ne
me.
815
peop
le o
f 602
ho
useh
olds
in 2
013
Non
-con
trib
utor
y So
cial
wel
fare
Allo
wan
ce:
Live
lihoo
d su
ppor
t2
(Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12) A
r cl
es
13.5
.2–1
3.5.
5)
Qua
lifyi
ng c
ondi
ons
: ci
zen
of 1
8-24
yea
rs o
ld w
ho b
ecam
e a
doub
le o
rpha
n be
fore
he/
she
turn
ed 1
8; h
omel
ess c
i ze
n re
leas
ed fr
om
priso
n; h
omel
ess a
nd w
ande
ring
ci z
en o
r hou
seho
ld;
Bene
fi ts:
MN
T1,2
00,0
00 o
ne
me.
403
pers
ons i
n 20
13
Non
-con
trib
utor
y So
cial
wel
fare
Allo
wan
ce:
Allo
wan
ces a
nd a
ssist
ance
2
(Law
on
Soci
al S
ecur
ity o
f Peo
ple
with
Disa
bilit
y (8
Dec
embe
r 200
5) A
r cl
es 5
.1.3
and
5.1
.4;
Gove
rnm
ent r
esol
u o
n N
o. 1
53, 2
012)
Targ
et: D
isabl
ed p
eopl
e;
Bene
fi ts:
Cos
t rei
mbu
rsem
ent o
f 80
type
s of p
rost
he c
and
ort
hopa
edic
dev
ices
3,
737
pers
ons
incl
udin
g ol
der
pers
ons.
MN
T7.6
bill
ion
spen
t in
2013
N
on-c
ontr
ibut
ory
Soci
al w
elfa
re A
llow
ance
2
(Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12) A
rt. 1
3.2.
4)
Targ
et: A
ci
zen
taki
ng c
are
of e
lder
or d
isabl
ed p
erso
n un
der m
edic
al c
ontr
ol, r
equi
ring
perm
anen
t car
e, a
nd su
ch; B
enefi
ts: M
NT5
8,00
0 pe
r mon
th. P
lus t
rain
ing
on c
aret
akin
g an
d nu
rsin
g sk
ills
16,8
00 o
lder
pe
ople
and
16,
800
peop
le w
ith
disa
bili
es i
n 20
13N
on-c
ontr
ibut
ory
Soci
al w
elfa
re A
llow
ance
2
(Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12) A
rt. 1
3.2.
3)
Targ
et: A
ci
zen
taki
ng c
are
of si
ngle
eld
er o
r disa
bled
per
son
in th
eir f
amily
, who
has
no
child
ren
or re
la v
es to
take
car
e of
him
/her
; Be
nefi t
s: M
NT5
8,00
0 pe
r mon
th. P
lus t
rain
ing
on c
aret
akin
g an
d nu
rsin
g sk
ills
Care
give
rs o
f 154
ol
der p
eopl
e an
d 23
9 pe
ople
with
di
sabi
li e
s in
2013
Non
-con
trib
utor
y So
cial
wel
fare
Allo
wan
ce2
(Mat
erni
ty )
(Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12) A
r cl
es
13.1
.4, 1
3.7
and
13.8
; Par
liam
enta
ry D
ecre
e N
o. 1
9,
2012
)
Qua
lifyi
ng c
ondi
ons
: Pre
gnan
t wom
en a
nd m
othe
rs w
ith in
fant
s sta
r ng
from
the
5th
mon
th o
f pre
gnan
cy w
ho h
ave
neve
r con
trib
uted
(o
r les
s tha
n 10
yea
rs) t
o th
e So
cial
insu
ranc
e sc
hem
e;
Bene
fi ts:
MN
T40,
000
per m
onth
for 1
2 m
onth
s. If
a m
othe
r die
d a
er g
ivin
g a
birt
h to
a c
hild
, fat
her o
f the
chi
ld o
r leg
ally
aut
horiz
ed
pers
on, o
r ado
pted
mot
her/
fath
er c
an b
e en
tled
to re
ceiv
e th
e al
low
ance
94,
900
peop
le
cove
red
and
MN
T38.
0 bi
llion
sp
ent i
n 20
13
111
Soci
al W
elfa
re S
ervi
ce2
(Com
mun
ity B
ased
Ser
vice
for W
orki
ng a
ge)
(Law
on
Soci
al W
elfa
re A
r cl
es 1
7.1.
1, 1
8.1,
18.
2.2
and
18.2
.4–1
8.2.
10)
Targ
et g
roup
: Disa
bled
per
son;
Vic
ms o
f vio
lenc
e; c
i ze
ns re
leas
ed fr
om a
pris
on; A
lcoh
ol a
nd d
rug
addi
cted
ci
zen;
ci
zens
with
in
cura
ble
dise
ase;
Hom
eles
s and
wan
derin
g ho
useh
old
and
ci z
en; m
igra
ted
ci z
en o
r ci
zen-
mem
ber o
f poo
r hou
seho
ld; S
ingl
e m
othe
r or
fath
er.
Serv
ices
: Sup
port
to h
omel
ess c
i ze
n an
d he
r/hi
s fam
ily m
embe
r in
soci
alizi
ng, c
ivil
regi
stra
on,
and
acc
omm
oda
ng
in a
tem
pora
ry
shel
ter;
Soci
alize
ci
zen
and
hous
ehol
d re
quiri
ng so
cial
wel
fare
ass
istan
ce, t
o he
lp in
form
ing
of a
com
mun
ity g
roup
, im
plem
en n
g in
com
e ge
nera
on
proj
ect a
nd p
rovi
de li
fe sk
ills t
rain
ing
; Cou
nsel
ling;
Reh
abili
ta o
n; Te
mpo
rary
acc
omm
oda
on
and
care
; Day
car
e se
rvic
e; H
ome
base
d ca
re a
nd se
rvic
e Fi
nanc
ing:
sinc
e 20
13 L
ocal
Gov
ernm
ent b
udge
tFu
ndin
g pr
oces
s: S
ervi
ce c
ots a
re e
s m
ated
by
Soci
al w
elfa
re u
nit o
f aim
ag, d
istric
t and
cap
ital c
ity o
n th
e ba
sis o
f pro
posa
l iss
ued
by
Live
lihoo
d Su
ppor
t Cou
ncil
of re
spec
ve
soum
and
kho
roo
and
be su
bmi
ed to
the
Loca
l Gov
erno
r Offi
ce.
8,7
00 p
eopl
e in
20
14
Soci
al W
elfa
re S
ervi
ce3
(Ins
tu o
nal C
are
Serv
ice)
(Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12) A
rt. 1
7.1.
2)
Scop
e: S
ingl
e di
sabl
ed c
i ze
n in
capa
ble
to li
ve in
depe
nden
tly, w
ith n
o ch
ild to
supp
ort,
and
requ
iring
pro
fess
iona
l ser
vice
and
spec
ial
cond
i on
sFi
nanc
ing:
Loc
al g
over
nmen
t bud
get s
ince
201
3Th
e go
vern
or o
f the
aim
ag, d
istric
t and
cap
ital c
ity m
ake
a de
cisio
n to
enr
ol a
n el
der i
n th
e ca
re se
rvic
e
320
peop
le w
ere
livin
g in
nin
e ca
re
cent
res i
n 20
13
Soci
al W
elfa
re S
ervi
ce2
(Foo
d an
d N
utri
on
Supp
ort S
ervi
ce)
(Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12) A
rt. 2
2)
Targ
et g
roup
: A m
embe
r of p
oor h
ouse
hold
as r
equi
ring
nece
ssar
y fo
od su
pply
; Hom
eles
snes
s. Ta
rget
ed h
ouse
hold
s ide
n fi
ed a
s liv
ing
stan
dard
scor
e of
PM
T ba
sed
data
base
. Aro
und
the
low
est 1
0% o
f hou
seho
lds i
n te
rms o
f con
sum
p o
n w
ill b
e co
vere
d in
201
5.
Serv
ice
deliv
erab
le: P
rovi
sion
of fo
od p
rodu
cts o
r pro
visio
n of
vou
cher
s/fo
od st
amps
to p
urch
ase
food
pro
duct
s; a
nd p
rovi
sion
of h
ot
mea
l or t
ea.
Bene
fi t: m
onth
ly M
NT1
0,00
0 pe
r adu
lt. F
rom
1 Ja
n. 2
015
the
amou
nt w
as in
crea
sed
to M
NT1
3,00
0 pe
r mon
th
47,5
48 a
dults
, an
d 97
,919
tota
l be
nefi c
iarie
s (of
16
,410
hou
seho
lds)
co
vere
d in
201
3
Polic
y ga
psIm
plem
enta
on
issu
es
1. In
sura
nce
Polic
y: C
ontr
ibu
on
colle
cted
on
a m
onth
ly b
asis,
whi
ch is
not
ada
pted
to th
e se
ason
ality
of h
erde
rs’ i
ncom
es.
2. B
enefi
ts: R
ela
vel
y lo
w-le
vel o
f ben
efi ts
, sho
rt d
ura
on
and
rest
ric v
e el
igib
ility
crit
eria
cre
ate
disin
cen
ve
to e
nrol
in so
cial
insu
ranc
e sc
hem
e.
3. O
ccup
a o
nal d
iseas
e an
d W
orki
ng in
jury
: -N
o in
ves
ga
on
mec
hani
sm a
nd c
riter
ia to
ass
ess w
heth
er th
e di
seas
e is
wor
k re
late
d;
-No
clea
r pol
icy
on w
heth
er a
ccid
ent d
urin
g co
min
g to
/fro
m w
ork
is co
vere
d; a
nd,
-No
pena
l es
or r
educ
ing
of b
enefi
ts if
wor
king
acc
iden
t is d
ue to
wor
ker’s
ow
n fa
ult
-Disa
bilit
y al
low
ance
for t
empo
rary
inca
paci
ty: t
he a
mou
nt is
ver
y lo
w (a
lmos
t thr
ee
mes
low
er th
an IL
O C
onve
n o
n N
o. 1
21)
Empl
oym
ent i
njur
y an
d oc
cupa
ona
l dise
ase
rate
s s ll
hig
h du
e to
lack
of e
ff ec
ve
prev
en o
n ac
vi
es.
4. M
ater
nity
: Vol
unta
ry so
cial
insu
ranc
e off
ers
low
er b
enefi
ts a
lthou
gh c
ontr
ibu
on
rate
is th
e sa
me
as m
anda
tory
rate
. Mat
erni
ty b
enefi
ts p
erio
d is
four
m
onth
s, c
ompa
red
to so
cial
ass
istan
ce b
enefi
t of
ten
mon
ths.
If th
e in
sure
d do
es n
ot q
ualif
y fo
r mat
erni
ty b
enefi
ts (1
2 m
onth
s con
trib
u o
n), s
he m
ay
seek
soci
al w
elfa
re b
enefi
ts.
5. U
nem
ploy
men
t ben
efi ts
: the
requ
irem
ent t
hat w
orke
rs h
ave
cont
ribut
ed fo
r at l
east
two
year
s (in
clud
ing
the
9 co
n n
uous
ly m
onth
s im
med
iate
ly
prec
edin
g th
eir j
ob lo
ss) t
o be
elig
ible
for b
enefi
ts is
too
stric
t and
cau
ses m
any
who
lose
thei
r job
s to
fail
to q
ualif
y fo
r any
une
mpl
oym
ent i
nsur
ance
be
nefi t
, and
poo
r lin
kage
s with
em
ploy
men
t pro
mo
on
prog
ram
mes
6. D
isabi
lity
pens
ion
- Sho
rtco
min
g in
the
leve
l of b
enefi
ts (l
evel
adj
uste
d in
ad-
hoc
man
ner,
no in
dexa
on)
, how
ever
dur
a o
n is
gene
rous
eno
ugh
- Too
muc
h fo
cus o
n ca
sh b
enefi
ts ra
ther
than
focu
sing
on e
mpl
oym
ent s
uppo
rt (t
urni
ng th
em in
to e
mpl
oyab
le a
nd e
mpl
oyed
ci
zens
)-S
houl
d be
mor
e em
phas
ized
on re
habi
lita
on
prog
ram
mes
. 7.
Cov
erag
e is
very
lim
ited
due
to re
stric
ve
qual
ifyin
g co
ndi
ons a
nd to
cum
bers
ome
appl
ica
on
proc
edur
es: a
pplic
a o
n at
the
soci
al w
elfa
re offi
ce o
f th
e ai
mag
cen
tre
(cos
t of b
us
cket
: aro
und
MN
T10,
000)
.
1. D
eliv
ery:
Soc
ial w
elfa
re b
enefi
ts c
anno
t del
iver
on
me
due
to n
ew B
udge
t pro
cess
Law
in U
vurk
hang
ai a
imag
.2.
Thi
s pro
gram
me
may
be
eff e
c v
e a
er c
ondu
c n
g th
e ho
useh
old
surv
ey th
at c
urre
ntly
ong
oing
3.
Tar
ge n
g: T
here
is n
o cl
ear d
efi n
i on
whi
ch w
ho is
th
e ho
mel
ess p
erso
n ei
ther
unc
lear
pro
cedu
re p
rovi
de a
sh
elte
r (ge
r) to
them
. 4.
Ade
quac
y: D
isabl
e pe
ople
can
not a
cces
s ser
vice
be
caus
e In
adeq
uate
faci
li e
s of p
rost
hese
s and
or
thop
aedi
cs a
nd e
ven
ther
e is
not s
ervi
ce p
rovi
der
espe
cial
ly in
rura
l are
a.
112
Reco
mm
enda
ons
/Key
reco
mm
enda
ons
Cos
ng
scen
ario
s
WA1
: Dev
elop
an
ince
n v
e m
echa
nism
for i
ncre
asin
g SI
cov
erag
e am
ong
herd
ers a
nd se
lf-em
ploy
ed. T
here
fore
, nee
d to
car
ry o
ut a
stud
y to
det
erm
ine
a su
itabl
e co
ntrib
u o
n le
vel
for h
erde
rs a
nd p
oten
al s
hare
of c
ontr
ibu
on
subs
idize
d by
the
Gove
rnm
ent.
WA2
: Ope
n op
on
to p
ay th
e vo
lunt
ary
soci
al in
sura
nce
cont
ribu
on
twic
e a
year
to fo
llow
seas
onal
ity o
f her
ders
’ inc
ome
(or t
o pa
y on
ce a
yea
r); p
rovi
de m
ore fl e
xibi
lity
in p
ayin
g ba
ck u
npai
d co
ntrib
u o
ns (a
pplie
s als
o to
soci
al in
sura
nce
pens
ion
fund
and
SHI
con
trib
u o
ns. L
inke
d to
reco
mm
enda
on
H4).
WA3
: Use
som
e in
form
a o
n te
chno
logy
syst
em c
onne
c n
g ce
ll ph
one
prov
ider
s and
ban
ks sh
ould
be
put i
n pl
ace.
The
reby
, dev
elop
mob
ile b
ased
-con
trib
u o
n ta
king
serv
ice
durin
g th
e po
ten
al i
ncom
e se
ason
s.
WA4
: Mob
ilizin
g so
cial
insu
ranc
e se
rvic
e m
ay g
ive
a br
oade
r and
eff e
c v
e ba
se, a
nd p
erm
its th
em to
exp
and
thei
r out
reac
h. S
ocia
l ins
uran
ce in
s tu
ons
shou
ld h
ave
to d
evel
op n
ew
way
s of w
orki
ng w
ith h
erde
rs, p
ossib
ly in
volv
ing
mob
ile offi
ces i
n so
me
case
s, a
nd in
sura
nce
prod
ucts
link
ed to
her
ders
’ sea
sona
l cas
h fl o
ws.
The
man
agem
ent c
apab
ility
of s
ocia
l in
sura
nce
ins
tu o
ns n
eed
to b
e im
prov
ed.
WA5
: Inc
reas
e re
plac
emen
t rat
e fo
r mat
erni
ty b
enefi
ts u
nder
vol
unta
ry so
cial
insu
ranc
e sc
hem
e to
100
%, a
t the
sam
e le
vel a
s mat
erni
ty b
enefi
ts u
nder
man
dato
ry so
cial
insu
ranc
e sc
hem
e.
WA6
: Inc
reas
e du
ra o
n of
mat
erni
ty b
enefi
ts (s
ix m
onth
s).
WA7
: Est
ablis
h sy
stem
ic li
nkag
es b
etw
een
soci
al in
sura
nce
and
ac v
e la
bour
mar
ket p
rogr
amm
es. N
ew e
mpl
oym
ent i
nsur
ance
sche
me
for i
nfor
mal
sect
or w
orke
rs/h
erde
rs m
ay b
e on
e of
goo
d lin
k be
twee
n em
ploy
men
t ser
vice
and
soci
al se
curit
y w
hich
con
sist o
f com
mon
type
s of i
nsur
ance
pro
duct
s.
WA8
: Inc
reas
e re
sour
ces a
lloca
ted
to p
ublic
aw
aren
ess a
nd c
ampa
igns
on
soci
al in
sura
nce
bene
fi ts a
nd w
orth
ines
s.
WA9
: Im
prov
e co
ordi
na o
n be
twee
n th
e so
cial
insu
ranc
e an
d ta
x au
thor
i es
, inc
ludi
ng in
form
a o
n ex
chan
ge a
bout
pay
men
t dec
lara
ons
to th
e tw
o ag
enci
es.
WA1
0: S
trea
mlin
e th
e pr
oces
s for
regi
stra
on
and
soci
al in
sura
nce
bene
fi ts c
laim
s. In
trod
uce
e-fi l
e an
d in
form
a o
n te
chno
logy
con
nec
vity
bet
wee
n ai
mag
and
soum
cen
tres
. W
A11:
Une
mpl
oym
ent b
enefi
ts fo
r tho
se w
ith le
ss th
an fi
ve y
ears
of c
ontr
ibu
on
shou
ld b
e in
crea
sed
to 5
0% (o
r at l
east
45%
) of p
rior w
ages
and
ben
efi ts
also
shou
ld b
e av
aila
ble
for
up to
six
mon
ths (
126
wor
king
day
or 1
82 c
alen
dar d
ays)
. The
se c
hang
es w
ill b
ring
the
Mon
golia
n pr
ogra
m in
agr
eem
ent w
ith th
e re
leva
nt IL
O c
onve
n o
ns.
WA1
2: U
nem
ploy
men
t ben
efi ts
: Brin
g m
ore fl e
xibi
lity
in q
ualif
ying
con
di o
ns: 9
mon
ths i
n th
e la
st 2
4 m
onth
s, to
impr
ove
prot
ec o
n of
wor
kers
hol
ding
shor
t ter
m c
ontr
acts
; in
crea
se th
e du
ra o
n of
ben
efi ts
up
to 6
mon
ths i
n th
e la
st 1
8 m
onth
s; im
prov
e lin
kage
s with
em
ploy
men
t pro
mo
on
prog
ram
mes
(EPP
).W
A13:
Fin
ance
wor
kpla
ce im
prov
emen
t and
inju
ry p
reve
n o
n ac
vi
es fr
om th
e W
ork
Inju
ry a
nd O
ccup
a o
nal D
iseas
e Fu
nd, e
.g. p
ublic
aw
aren
ess a
imed
at b
oth
wor
kers
and
em
ploy
ers,
arr
angi
ng c
onsu
l ng
serv
ices
and
diss
emin
a o
n of
goo
d ex
perie
nces
.W
A14:
Adj
ust t
he fo
rmul
a us
ed in
the
calc
ula
on
of d
isabi
lity
and
surv
ivor
ben
efi ts
und
er th
e N
DC sc
hem
e. If
the
form
ula
is no
t cha
nged
, disa
bilit
y an
d su
rviv
or b
enefi
ts w
ould
be
out
of li
ne w
ith O
ld a
ge p
ensio
n be
nefi t
s.
WA1
5: In
trod
uce
soci
al in
sura
nce
regi
stra
on
as a
con
di o
n to
ben
efi t
from
the
eigh
t EPP
. W
A16:
Car
ry o
ut a
stud
y fo
r the
pos
sibili
es t
o se
lect
the
type
of s
ocia
l ins
uran
ce b
y m
anda
tory
bas
ed in
sure
d pe
rson
. W
A17:
Gov
ernm
ent (
or e
mpl
oyer
) sho
uld
pay
soci
al in
sura
nce
cont
ribu
ons
(exc
ludi
ng H
I) fo
r mot
hers
thos
e w
ho lo
okin
g a
er h
er b
aby
un l
3 ye
ars o
ld.
WA1
8: T
he c
ompe
nsa
ons
by
empl
oyer
s to
the
empl
oyee
s’ d
amag
e ca
used
by
wor
k in
jury
and
occ
upa
ona
l dise
ases
in a
ccor
danc
e to
the
Labo
ur C
ode
(Art
. 97)
shou
ld b
e al
low
ed
ever
y ye
ar (c
urre
nt la
w sa
ys o
ne o
r mor
e m
es th
at is
not
cle
ar).
WA1
9: M
odify
cur
rent
une
mpl
oym
ent a
pplic
a o
n pr
oced
ure.
Une
mpl
oym
ent b
enefi
t ap
plic
a o
n pe
riod
shou
ld b
e m
axim
um o
ne m
onth
(cur
rent
ly, 1
4 w
orki
ng d
ays)
.W
A20:
If b
usin
ess e
n
es a
nd o
rgan
iza o
ns d
o no
t em
ploy
disa
bled
per
sons
at t
he le
vel s
pecifi e
d in
Lab
our C
ode
(Art
. 111
: disa
bled
per
sons
shal
l be
empl
oyed
not
less
than
3%
of
its to
tal s
taff
by c
ompa
nies
hav
ing
mor
e th
an 5
0 em
ploy
ees)
, the
y sh
ould
pay
a m
onth
ly p
aym
ent n
ot le
ss th
an e
qual
to th
ree
mes
of m
inim
um w
age
stan
dard
for e
ach
vaca
ncy
they
sh
ould
hav
e em
ploy
ed.
WA1
-1: I
ncre
ase
the
repl
acem
ent r
ate
for
mat
erni
ty b
enefi
ts o
f w
omen
regi
ster
ed u
nder
vo
lunt
ary
soci
al in
sura
nce
sche
me
to 1
00%
.
WA1
-2: S
tatu
s quo
WA2
: Inc
reas
e un
empl
oym
ent i
nsur
ance
re
plac
emen
t rat
e to
50%
(in
sure
d le
ss th
an fi
ve
year
s).
WA3
-1: S
ubsid
ize v
olun
tary
co
ntrib
u o
n (in
jury
+
sickn
ess +
mat
erni
ty =
2%
) at 5
0% o
f its
leve
l (c
ontr
ibu
on
paid
by
wor
ker =
1%
or M
NT1
,920
if
at m
inim
um w
age)
. W
A3-2
: Sub
sidize
vol
unta
ry
cont
ribu
on
(inju
ry +
sic
knes
s + m
ater
nity
=
2%) a
t 70%
of i
ts le
vel
(con
trib
u o
n pa
id b
y w
orke
r = 0
.6%
or M
NT1
,152
if
at m
inim
um w
age)
.
1 In
volv
es S
IGO
, MPD
SP.
2 In
volv
es S
ocia
l Wel
fare
Dep
artm
ent,
MPD
SP
113
Soci
al p
rote
c o
n fl o
or a
sses
smen
t mat
rix: G
uara
ntee
3b-
Wor
king
age
(Ac
ve
Labo
ur M
arke
t Pol
icie
s)Sc
hem
e/Pr
ogra
mm
eO
verv
iew
of e
xis
ng
prov
isio
nsAn
cip
ated
pol
icy
chan
ges/
law
refo
rms
Exis
ng
cove
rage
Prog
ram
me
on p
repa
ra o
n of
pro
fess
iona
l w
orke
rsKe
y ac
vity
: Reg
istra
on
of tr
aine
es (a
four
-way
con
trac
t is e
stab
lishe
d be
twee
n th
e un
empl
oyed
per
son,
Gov
ernm
ent,
trai
ning
pro
vide
r and
em
ploy
er);
voca
ona
l tra
inin
g at
voc
a o
nal t
rain
ing
cent
res a
nd p
rodu
c o
n ce
ntre
s, 2
0 pe
r cen
t of t
rain
ing
shal
l cov
er th
e th
eory
and
80
per
cent
shal
l be
the
prac
cal
app
lianc
e of
theo
re c
al k
now
ledg
e; a
nd e
valu
a o
n an
d as
sess
men
t of g
radu
ates
and
job
plac
emen
ts.
Fina
ncin
g: E
mpl
oym
ent P
rom
o o
n Fu
nd (E
PF)
Proc
ess:
Fun
d to
dev
elop
voc
a o
nal t
rain
ing
curr
icul
a on
job-
seek
ers’
dem
and.
A m
inim
um n
umbe
r par
cip
ants
of f
orm
s a g
roup
for t
rain
ing
in e
.g. e
lect
ricity
, kin
derg
arte
n ca
re g
iver
s, b
us
cket
selle
rs. S
ome
40%
of t
rain
ing
is ba
sed
on e
mpl
oyer
s’ re
ques
t, 60
% o
n pe
rson
al in
tere
st.
Cost
: Tra
inee
is p
rovi
ded
with
:•
a m
onth
ly fe
llow
ship
of M
NT1
90,0
00;
• m
onth
ly a
ccom
mod
a o
n co
st o
f MN
T75,
000;
• w
orki
ng c
loth
s of M
NT6
0,00
0.Ad
di o
nal c
ost f
or a
pra
c c
al se
ssio
n M
NT3
12,0
00 p
er a
men
tor (
men
tor a
nd tr
aine
e ra
o 1
:15)
for 3
mon
ths.
Empl
oyer
that
pro
vide
d a
job
plac
e re
ceiv
es M
NT6
5,00
0 pe
r tra
inee
. In
tota
l MN
T7.2
15 b
illio
n sp
ent i
n 20
14.
Fina
ncin
g: E
PF
4,18
2 pe
ople
tr
aine
d; 3
,085
jobs
cr
eate
d, o
f whi
ch
2,69
5 re
gula
r and
39
0 te
mpo
rary
Prog
ram
mes
on
empl
oym
ent p
repa
ra o
n 1
Key
ac v
i es
: Cou
nsel
ling
and
orie
nta
on:
revi
ew o
f car
eer,
prep
ara
on
for i
nter
view
s (Re
imbu
rsem
ent o
f cos
ts fo
r obt
aini
ng n
eces
sary
do
cum
ents
and
med
ical
che
ck-u
p. M
axim
um o
f rei
mbu
rsem
ent c
ost p
er p
erso
n is fi x
ed b
y M
inist
er o
f Lab
our;
MN
T144
.2 m
illio
n in
201
4);
Empl
oym
ent t
rain
ing
(MN
T1.6
182
billi
on sp
ent i
n 20
14);
mea
sure
s to
supp
ort e
mpl
oyer
s; re
imbu
rsem
ent o
f pra
c c
al tr
aini
ng c
ost o
f up
to th
ree
mon
ths p
er fu
ll m
e w
orke
r tra
ined
thro
ugh
on jo
b tr
aini
ng (1
2 m
es th
e m
inim
um w
age
for e
ach
new
ly c
reat
ed jo
b th
at q
ualifi
es
for b
enefi
ts u
nder
the
prog
ram
me.
The
em
ploy
ee m
ust h
ave
wor
ked
for m
ore
than
12
mon
ths;
sala
ry su
ppor
t: 1)
One
yea
r’s sa
lary
to a
n em
ploy
er if
the
empl
oyee
reac
hed
wor
king
age
whi
le in
the
child
ren’
s wel
fare
cam
pus o
r was
rele
ased
from
a p
rison
and
was
pla
ced
in a
fu
ll- m
e jo
b th
roug
h on
-the
-job
trai
ning
. Th
e em
ploy
ee m
ust h
ave
wor
ked
for m
ore
than
one
yea
r; 2)
50
per c
ent o
f one
yea
r’s sa
lary
to a
n em
ploy
er if
the
empl
oyee
reac
hed
wor
king
age
whi
le in
the
child
ren’
s wel
fare
cam
pus o
r was
rele
ased
from
pris
on a
nd p
lace
d; M
NT1
.149
1 bi
llion
in 2
014)
5,69
5 pe
ople
be
nefi
ed
from
co
unse
lling
se
rvic
es; 6
,399
fr
om e
mpl
oym
ent
trai
ning
; and
487
em
ploy
ers f
rom
the
empl
oyer
s’ su
ppor
t.
Empl
oym
ent p
rom
o o
n pr
ogra
mm
e fo
r he
rder
s (EP
P-He
rder
s) 2
Qua
lifyi
ng c
ondi
ons
: her
der f
amily
at l
east
with
2 m
embe
rs a
ged
unde
r 40
year
s old
hav
ing
50-1
50 h
eads
of s
tock
and
faci
li e
s as f
ence
s or
barn
s and
gra
ssla
nd. F
amili
es a
lso sh
ould
hav
e th
eir F
amily
dev
elop
men
t pla
n (F
DP) a
nd A
gree
men
t of p
roba
one
r to
the
qual
ifi ed
her
ders
Ke
y ac
vi
es: r
esto
ckin
g of
ani
mal
s for
you
ng h
erde
rs (M
NT5
mill
ion,
one
m
e pe
r hou
seho
ld; 5
0 pe
r cen
t of t
he lo
an sh
all b
e pa
id b
ack
with
in th
ree
year
s; M
NT2
.906
bill
ion
spen
t in
2014
); fi n
anci
al su
ppor
t to
herd
ers-
empl
oyer
s (He
rder
-em
ploy
er w
ho h
ire p
roba
one
r-her
ders
w
ith fe
w a
nim
als o
r tho
se h
erde
rs w
ho lo
st th
eir a
nim
als b
ecau
se o
f nat
ural
disa
ster
s; e
mpl
oyer
s mus
t pay
at l
east
for 1
2 m
onth
s not
less
th
an th
e na
ona
l min
imum
wag
e an
d m
ust t
each
them
her
ding
tech
niqu
es; e
mpl
oyer
s rec
eive
up
to te
n liv
esto
ck a
nnua
lly, U
p to
MN
T1
mill
ion
gran
t, fo
r one
m
e; M
NT4
0 m
illio
n sp
ent i
n 20
14);
trai
ning
and
stud
y to
urs o
n he
rdin
g, fa
ir ex
hibi
on
(MN
T442
.4 m
illio
n sp
ent i
n 20
14);
, M
anag
emen
t: pr
ogra
mm
e m
anag
ed in
col
labo
ra o
n w
ith th
e Ag
ricul
ture
Ext
ensio
n Ce
ntre
at s
oum
leve
ls an
d so
um h
erde
rs tr
aini
ng c
entr
es
for t
he tr
aini
ng (t
rain
ing
cent
res r
ecei
ve M
NT3
00,0
00 p
er b
enefi
cia
ry tr
aine
d). F
unds
allo
cate
d by
aim
ag g
over
nmen
t to
soum
s. F
und
man
aged
by
the
aim
ag e
mpl
oym
ent d
ivisi
on. S
oum
cen
tres
iden
fi es
goo
d pr
opos
als,
Em
ploy
men
t div
ision
sele
cts b
enefi
cia
ries (
crite
ria: r
easo
n fo
r lo
sing
anim
als)
, the
n bu
ys li
vest
ock
from
a so
um k
now
n fo
r hav
ing
good
ani
mal
s and
gra
nt th
ese
anim
als t
o th
e be
nefi c
iarie
s.
1,49
2 yo
ung
herd
ers;
40
herd
ers-
empl
oyer
s; 1
,101
he
rder
s ben
efi
ed
from
the
trai
ning
s.
Empl
oym
ent p
rom
o o
n pr
ogra
mm
e fo
r w
orke
rs o
ver 4
0 an
d se
nior
s (EP
P-ov
er 4
0) 2
Targ
et g
roup
: per
sons
who
are
hav
ing
diffi
culty
fi nd
ing
a jo
b ag
ed o
ver 4
0 an
d el
derly
per
sons
Sc
ope:
trai
ning
and
retr
aini
ng, c
ouns
ellin
g jo
b m
edia
on
and fi n
anci
al su
ppor
ng
to e
mpl
oyer
s who
recr
uit f
or w
ork
for a
ged
over
40.
Ke
y ac
vi
es: P
roje
ct o
n pl
an n
g po
tato
, veg
etab
les a
nd fr
uits
(MN
T527
.1 m
illio
n sp
ent i
n 20
14);
Proj
ects
on
grou
p w
ork
to p
rote
ct a
nd
reha
bilit
ate
the
envi
ronm
ent a
nd p
reve
nt in
jurie
s and
acc
iden
ts (A
gro
up w
ith 1
–3 p
eopl
e, d
ura
on
4 m
onth
s per
gro
up, i
ncen
ve
is M
NT2
00,0
00 p
er m
onth
per
gro
up; M
NT5
39.6
mill
ion
spen
t in
2014
); an
d Pr
ojec
t on
regu
la n
g tr
affi c
cro
sses
aro
und
prim
ary
and
seco
ndar
y sc
hool
s (M
NT5
mill
ion,
one
m
e pe
r hou
seho
ld; 5
0 pe
r cen
t of t
he lo
an sh
all b
e pa
id b
ack
with
in th
ree
year
s; M
NT2
.906
bill
ion
spen
t in
2014
).
1,28
6 pe
ople
for
the
plan
ta o
n pr
ogra
mm
e; 2
,097
pe
ople
for t
he
wor
king
inju
ry
prev
en o
n pr
ojec
t; 45
8 pe
ople
for
road
safe
ty a
roun
d sc
hool
s.
114
Empl
oym
ent p
rom
o o
n pr
ogra
mm
e fo
r peo
ple
with
disa
bili
es (
PWD)
(EPP
-Disa
bilit
y)2
Targ
et g
roup
: per
sons
with
disa
bilit
y.Ke
y ac
vi
es: 1
) ski
lls tr
aini
ng (M
NT8
3.3
mill
ion
spen
t in
2014
); 2)
Fin
anci
al su
ppor
t to
peop
le w
ith d
isabi
li e
s for
thei
r ent
repr
eneu
r de
velo
pmen
t (O
ne
me
ince
n v
e eq
ual t
o 12
m
es th
e m
inim
um w
age
for e
ach
pers
on w
ith d
isabi
li e
s em
ploy
ed fo
r mor
e th
an 1
2 m
onth
s,
fi nan
cial
supp
ort:
MN
T5 m
illio
n pe
r job
pla
ce (u
p to
MN
T50
mill
ion)
if m
ore
than
eig
ht p
erm
anen
t pos
i on
s are
cre
ated
esp
ecia
lly fo
r the
sk
ills a
nd fe
atur
es o
f PW
Ds, b
ased
on
a co
mpe
ve
bid
for t
he p
roje
ct (M
NT9
7.8
mill
ion
spen
t in
2014
); 3)
Sup
port
to e
mpl
oyer
s tha
t pro
vide
jo
b pl
aces
for P
WD:
(i) O
ne
me fi n
anci
al su
ppor
t for
new
job
plac
emen
t pro
ject
ini
ated
by
PWD,
bas
ed o
n ca
lcul
a o
n as
of o
ne w
orki
ng
plac
e=M
NT1
mill
ion
up to
a m
axim
um o
f MT1
0 m
illio
n fo
r PW
D’s b
usin
ess.
(ii)
Fina
ncia
l sup
port
for n
ew jo
b pl
acem
ent p
roje
ct in
i at
ed b
y en
terp
rises
, bas
ed o
n ca
lcul
a o
n as
of o
ne w
orki
ng p
lace
=MN
T5 m
illio
n up
to a
max
imum
of M
NT5
0 m
illio
n on
e m
e.
1,02
2 pe
ople
be
nefi t
ed fr
om
trai
ning
, 1,4
55
PWD
from
fi na
ncia
l su
ppor
t and
14
5 em
ploy
ers
empl
oyed
PW
D.
“Inh
abite
d M
ongo
lia”
prog
ram
me:
Pub
lic W
ork
(EPP
-PW
P)2
Targ
et g
roup
: une
mpl
oyed
per
son,
per
sons
hav
ing
diffi
culty
fi nd
ing
job,
her
ders
, stu
dent
s, e
lder
ly, a
nd sm
all e
nter
prise
s.Ke
y ac
vi
es: 1
) 10
wor
king
day
s pai
d to
em
ploy
ees o
f loc
al p
ublic
wor
k pr
ogra
mm
es (M
NT1
4,00
0 pe
r per
son
per d
ay a
s sal
ary
and
a lu
mp-
sum
of M
NT1
0,00
0 fo
r wor
king
equ
ipm
ent p
er p
erso
n; M
NT2
.251
6 bi
llion
spen
t in
2014
), 2)
10
wor
king
day
s pai
d to
em
ploy
ees o
f gre
en
wor
k pr
ovid
ed b
y lo
cal g
over
nmen
t (M
NT1
4,00
0 pe
r per
son
per d
ay a
s sal
ary
and
MN
T10,
000
lum
p-su
m p
er p
erso
n fo
r wor
king
equ
ipm
ent;
MN
T2.0
803
billi
on sp
ent i
n 20
14.
17,2
99 p
eopl
e pa
r ci
pate
d in
PW
P,
8,03
0 pe
ople
in
loca
l gov
ernm
ent
proj
ects
. Pr
ogra
mm
e fo
r ent
repr
eneu
r dev
elop
men
t (E
PP-e
ntre
pren
eurs
)Ta
rget
gro
up: b
usin
ess e
nter
prise
s in
all s
izes.
Key
ac v
i es
: 1) P
rovi
ding
fi na
ncia
l sup
port
to e
ntre
pren
eurs
as f
ollo
ws:
i) c
i ze
ns o
ver a
ge 4
0; ii
) cii
zen
s tha
t hav
e diffi
cul
es o
f fi n
ding
a
job;
ii) s
elf-e
mpl
oyer
s and
ci
zens
that
star
t a b
usin
ess o
r mov
e fr
om th
e in
form
al se
ctor
to fo
rmal
(MN
T1 m
illio
n pe
r per
son;
MN
T1.5
649
billi
on sp
ent i
n 20
14);
2) b
usin
ess a
nd in
cuba
on
serv
ices
(MN
T1.0
526
billi
on sp
ent i
n 20
14).
1,41
7 pe
ople
re
ceiv
ed fi
nanc
ial
supp
ort;
8,65
8 be
nefi
ed
from
bu
sines
s ser
vice
sYo
uth
Empl
oym
ent P
rom
o o
n Pr
ogra
mm
e (E
PP-Y
outh
)
(Law
on
Empl
oym
ent P
rom
o o
n (1
7 Ju
ne 2
011)
Ar
t. 6.
3.7)
3
Targ
et g
roup
: uni
vers
ity st
uden
ts, a
nd y
oung
une
mpl
oyed
regi
ster
ed w
ith th
e in
tegr
ated
em
ploy
men
t dat
abas
e;
Key
ac v
i es
: 1)
“So
um y
outh
” pr
ojec
t with
an
obje
c v
e to
pro
vide
pub
lic se
rvic
es to
ci
zens
in re
mot
e so
ums a
nd to
wns
and
to c
ontr
ibut
e in
to a
c v
i es
for l
ocal
dev
elop
men
t (O
ne
me
ince
n v
e of
MN
T200
,000
shal
l be
paid
to e
ach
par
cipa
nt, i
f s/h
e w
orke
d fo
r mor
e th
an
21 w
orki
ng d
ays;
MN
T403
.6 m
illio
n sp
ent i
n 20
14);
2) “
Star
t of w
ork”
pro
ject
supp
or n
g yo
uth
par
cipa
on
in a
c v
i es
such
as w
inte
r pr
epar
a o
n, b
uild
ing
mod
el w
inte
r she
lter,
deliv
erin
g ne
w b
aby
anim
al, m
akin
g ha
y an
d cr
oppi
ng a
c v
i es
by fi n
anci
ng o
f loc
al a
utho
ri e
s an
d ci
zen
s (O
ne
me
ince
n v
e of
MN
T200
,000
shal
l be
paid
to e
ach
par
cipa
nt, i
f s/h
e w
orke
d fo
r mor
e th
an 2
1 w
orki
ng d
ays;
MN
T1.4
857
billi
on sp
ent i
n 20
14),
3) S
uppo
rt to
you
th in
com
e ge
nera
on
thro
ugh
sum
mer
wor
ks in
min
ing,
road
bui
ldin
g, c
onst
ric o
n an
d ot
her s
ecto
rs
durin
g st
uden
ts’ s
umm
er v
aca
on
(One
m
e in
cen
ve
of M
NT2
00,0
00 sh
all b
e pa
id to
eac
h m
embe
r of a
team
with
10–
15 m
embe
rs, i
f s/h
e w
orke
d in
the
abov
emen
one
d ec
onom
ic se
ctor
s for
mor
e th
an 2
1 w
orki
ng d
ays;
MN
T198
.8 m
illio
n sp
ent i
n 20
14).
1,97
8 pe
ople
from
th
e “s
oum
you
th”
proj
ect,
7,31
1 pe
ople
from
the
“sta
rt o
f wor
k”
proj
ect,
914
peop
le
from
the
yout
h in
com
e su
ppor
t.
Seni
or sp
ecia
list’s
con
sulta
on
serv
ice
proj
ect
(EPP
-Sen
ior s
peci
alist
) Ta
rget
gro
up: s
enio
r peo
ple
Key
ac v
i es
: 1) C
onsu
l ng
serv
ices
on
nece
ssar
y fi e
ld o
f wor
k to
aim
ag, s
oum
, dist
rict a
nd su
b-di
stric
t by
elde
r peo
ple’
s tea
m (a
team
at
leas
t of t
hree
mem
bers
, at l
east
thre
e m
onth
s ser
vice
and
56
wor
king
hou
r per
mon
th) (
MN
T1 m
illio
n pe
r per
son;
MN
T984
.7 m
illio
n sp
ent i
n 20
14);
2) C
onsu
l ng
serv
ice,
bas
ed o
n a
cont
ract
, by
elde
r peo
ple
thro
ugh
NGO
(im
plem
ente
d by
Em
ploy
men
t Ser
vice
Cen
ter i
n U
laan
bata
ar
only,
bas
ed o
n pr
ojec
t bid
, 70
per c
ent o
f bud
get s
hall
be p
aid
in a
dvan
ce a
nd 3
0 pe
r cen
t up
on a
ccom
plish
ed a
c v
i es
).
3,03
0 pe
ople
pa
r ci
pate
d in
co
nsul
tanc
ies i
n ai
mag
s and
soum
s,
272
peop
le in
U
laan
baat
ar.
Na
ona
l Qua
lifi e
d W
orke
r Pre
para
on
prog
ram
me
Agre
emen
t bet
wee
n M
ongo
lian
Gove
rnm
ent
(MO
L) a
nd O
yu To
lgoi
LLC
3
Targ
et g
roup
: Ope
n to
all
ac v
e ag
e po
pula
on.
Tw
o st
eps v
oca
ona
l tra
inin
g pr
ogra
mm
e co
nsist
s with
two-
mon
th c
lass
room
trai
ning
and
thre
e-m
onth
pr
ac c
e in
fi el
d an
d M
NT1
90,4
00 m
onth
ly a
llow
ance
incl
uded
soci
al in
sura
nce
(hea
lth in
sura
nce
as w
ell)
pack
age.
Thi
s pro
gram
me
star
ted
Feb.
201
3 an
d fu
ndin
g fr
om O
yu To
lgoi
LLC
(lar
ge m
inin
g pr
ojec
t in
Mon
golia
) ww
w.o
t.mn/
en.
The
Gove
rnm
ent w
ill c
on n
uing
this
prog
ram
me
in 2
014
for a
noth
er 7
,000
trai
nee
and
spen
d M
NT1
3.8
billi
on4,
200
peop
le
trai
ned
and
MN
T7.2
150
billi
on
spen
t in
2014
Scho
lars
hip
Gran
t for
VT
stud
ents
(Law
on
Educ
a o
n (6
June
200
2) A
rt. 4
3.2.
10;
Gove
rnm
ent r
esol
u o
n N
o. 3
0, 2
008)
4
Targ
et g
roup
: Na
ona
l sch
olar
ship
for a
ll st
uden
ts o
f voc
a o
nal t
rain
ing
and
prod
uc o
n ce
ntre
s. M
NT4
5,00
0 fo
r ten
mon
ths.
Q
ualif
ying
con
di o
ns: b
e a
regu
lar c
ours
e st
uden
t
Incr
ease
a le
vel o
f sch
olar
ship
equ
al to
MN
T70,
000
and
MN
T12.
8 bi
llion
alre
ady
appr
oved
in 2
014
budg
et.
39,8
98 st
uden
ts
cove
red,
MN
T28
billi
on sp
ent i
n 20
14
115
Supp
ort f
or S
mal
l and
Med
ium
Ent
erpr
ises
(Pre
fere
n a
l Loa
n Pr
oced
ures
to th
e SM
bu
sines
s)
(Law
on
Gove
rnm
ent S
peci
al F
unds
(29
June
20
09) A
rt. 5
.4.6
and
14;
Lab
our M
inist
eria
l O
rder
No.
A/4
4, 2
013)
5
Loan
s to
supp
ort d
evel
opm
ent a
nd/o
r im
prov
emen
t of S
ME
(pre
fera
bly
impr
ovem
ent)
. Lo
an a
mou
nt a
nd p
erio
d: u
p to
MN
T1.5
bill
ion
(with
na
ona
l com
miss
ion
appr
oval
), up
to M
NT2
00.0
mill
ion
(cap
ital c
ity c
omm
issio
n ap
prov
al) a
nd u
p to
MN
T100
.0 m
illio
n (a
imag
and
dist
rict l
evel
com
miss
ion
appr
oval
) for
up
to fi
ve y
ears
. Q
ualif
ying
con
di o
ns: t
o be
in li
ne w
ith th
e ai
mag
or s
oum
eco
nom
ic a
nd so
cial
dev
elop
men
t str
ateg
y.
Fund
man
aged
by
the
empl
oym
ent d
ivisi
on a
t aim
ag o
r sou
m le
vels,
thro
ugh
bank
for d
eliv
ery
and
reim
burs
emen
t of t
he lo
an. I
nter
est r
ate:
7%
(lea
sing
10.5
%) p
er y
ear.
Agric
ultu
re e
xten
sion
cent
er (s
oum
or d
istric
t) o
r em
ploy
men
t ser
vice
cen
ter (
aim
ag) p
rovi
de fr
ee-o
f-cha
rge
coun
selli
ng se
rvic
es to
dev
elop
the
prop
osal
, but
it d
oes n
ot e
xist
gui
danc
e or
trai
ning
serv
ices
to su
cces
sful
ly im
plem
ent t
he p
roje
ct a
t sou
m
leve
l, (m
arke
ng
stra
tegy
, bus
ines
s pla
n, e
tc.).
Fu
ndin
g: S
ME
fund
(at a
imag
leve
l, bu
t ope
n to
soum
pro
ject
s)
67 S
MEs
ben
efi
ed,
havi
ng M
NT4
6.1
billi
on in
201
3
Supp
ort f
or S
mal
l and
Med
ium
Ent
erpr
ises
(Law
on
Gove
rnm
ent S
peci
al F
unds
(29
June
20
09);
Gove
rnm
ent r
esol
u o
n N
o. 1
34, 2
011,
La
bour
Min
ister
’s or
der N
o. A
/69/
2012
and
A/
38/2
013)
6
Smal
l and
med
ium
ent
erpr
ises l
oans
; Em
ploy
men
t pro
mo
on
loan
s; L
oans
from
So
um d
evel
opm
ent.
Loan
s for
pro
ject
s sub
mi
ed b
y he
rder
s’ a
ssoc
ia o
n, c
oope
ra v
es. I
nter
est r
ate:
3%
. Man
aged
by
soum
gov
erno
r acc
ordi
ng to
bid
regu
la o
ns, n
o in
term
edia
ries
to d
eliv
er a
nd re
cove
r the
loan
. Fu
ndin
g: S
oum
Dev
elop
men
t Fun
d
MO
L pl
anni
ng to
allo
cate
add
i on
al M
NT1
1.0
billi
on
loan
for 1
66 b
enefi
cia
ries e
nd o
f yea
r 201
3, fi
nanc
ed
by re
paym
ent o
f SM
E lo
an a
nd a
ddi
onal
sour
ce o
f the
De
velo
pmen
t ban
k of
Mon
golia
. Law
on
Loan
Gua
rant
ee
Fund
(LGF
) was
ado
pted
by
the
Mon
golia
n Pa
rliam
ent i
n M
arch
, 201
2. T
his f
und
is a
join
t ins
tu o
n be
twee
n th
e pu
blic
and
priv
ate
sect
ors,
and
will
pro
vide
col
late
ral f
or u
p to
60%
on
a lo
an o
f MN
T20
mill
ion
for s
mal
l bus
ines
s.
440
peop
le sm
all
and
med
ium
en
terp
rises
lo
ans;
5,7
29
peop
le re
ceiv
ed
empl
oym
ent
prom
o o
n lo
ans,
M
NT1
7.4
billi
on
spen
t, 12
,915
jobs
cr
eate
d, o
f whi
ch
10,1
93 re
gula
r and
2,
722
tem
pora
ry
jobs
; 3,3
86 p
eopl
e re
ceiv
ed lo
ans f
rom
So
um d
evel
opm
ent,
MN
T5.8
bill
ion
spen
t.Po
licy
gaps
Impl
emen
ta o
n is
sues
1. E
PP-T
rain
ing:
Voc
a o
nal t
rain
ing
is la
ckin
g fo
r th
is pr
ogra
mm
e an
d ca
n re
ason
ably
pro
mot
e it
and
also
, the
crit
eria
of e
nrol
men
t pro
gram
me
that
an
indi
vidu
al w
ho w
as se
ek jo
b ov
er 6
m
onth
s, sh
ould
dec
reas
e to
bet
wee
n 2-
3 m
onth
s”.
2. N
eeds
of t
his E
PP-H
erde
rs w
as h
igh
in
the
rura
l are
a bu
t lim
ited
fund
ing
and
hard
co
nstr
aint
crit
eria
may
slow
dow
n pr
ogra
mm
e im
plem
enta
on.
3.
Lac
k of
info
rma
on
diss
emin
a o
n on
so
cial
insu
ranc
e pr
ogra
mm
e an
d po
or li
nkag
e be
twee
n so
cial
secu
rity
and
empl
oym
ent
prog
ram
mes
. Her
ders
exe
mpt
ed fr
om m
ost
taxa
on
so th
ey m
ay n
ot g
ive
wei
ght t
o so
cial
in
sura
nce.
We
shou
ld ta
ke y
oung
her
ders
into
co
nsid
era
on
thos
e w
ho g
row
ing
up u
nder
this
prog
ram
me.
4. M
OL
shou
ld c
onsid
er h
ow to
impr
ove
the
desig
n of
the
EPP-
Ove
r 40.
Voc
a o
nal t
rain
ing
and
othe
r tra
inin
gs in
tend
ed to
cha
nge
thei
r m
ind
may
be
eff e
c v
e.
1. A
ll th
ese
prog
ram
mes
are
s ll
ver
y ne
w (s
ince
Jan
2013
), so
pop
ula
on
not a
war
e. S
ix o
f the
ALM
Ps h
ave
sa s
fact
ory
impl
emen
ta o
n (6
mon
th re
view
). Ho
wev
er,
ther
e is
a ne
ed to
rein
forc
e ca
paci
ty o
f lab
our o
ffi ce
rs a
t the
loca
l lev
el fo
r the
impl
emen
ta o
n of
thes
e ne
w p
rogr
amm
es.
2. L
ack
of c
oord
ina
on
and
over
lapp
ing,
con
trad
ic o
n. F
unds
and
cap
acity
are
lack
ing
to im
plem
ent e
ff ec
vel
y th
e pr
ogra
mm
es. E
spec
ially
em
ploy
men
t sup
port
and
em
ploy
men
t cre
a o
n in
rura
l are
as, w
here
hig
h le
vel o
f une
mpl
oym
ent a
nd p
over
ty.
3. T
he p
erio
ds o
f voc
a o
nal t
rain
ing
curr
icul
ums i
s too
shor
t, th
e tr
aine
es c
anno
t gai
n pr
ofes
siona
l ski
lls th
at w
ill m
ake
him
or h
er c
ompe
ve
in th
e la
bour
mar
ket.
The
sele
c o
n pr
oces
s to
obta
in a
n au
thor
iza o
n fo
r ope
ning
a tr
aini
ng in
s tu
ons
tend
to fa
vour
Ula
anba
atar
, the
refo
re, l
eavi
ng b
ehin
d vo
ca o
nal t
rain
ing
supp
ly
for s
easo
nal j
ob in
the
rura
l are
a. S
o, th
ere
is a
need
to c
reat
e tr
aini
ng m
echa
nism
/pro
gram
me
that
can
pro
mot
e ru
ral c
oope
ra v
es a
nd se
ason
al jo
b pl
acem
ent.
4. W
eak
impl
emen
ta o
n. T
he m
ain
requ
irem
ents
are
not
real
is c
. For
inst
ance
, act
ually
thos
e po
or p
eopl
e w
ho n
eede
d so
cial
ass
istan
ce a
re n
ot w
ell t
arge
ted
for
this
prog
ram
me
beca
use
they
do
not h
ave
real
asp
ira o
n fo
r em
ploy
men
t and
mos
tly h
ave
relis
h to
dep
end
on so
cial
ass
istan
ce. O
ther
han
d, th
e em
ploy
ers d
o no
t in
tere
st w
orki
ng a
ge p
eopl
e th
ose
who
rele
ased
from
pris
on, i
nval
ids a
nd sc
hool
dro
p-ou
t you
ng p
erso
ns b
ecau
se o
f tho
se jo
b se
eker
s o e
n ge
t out
from
oth
er
empl
oyer
s, a
nd re
cord
ed a
s tru
th le
ss jo
bsee
ker.
5. F
ive
of 2
3 so
ums w
ere
cove
red
unde
r the
EPP
-Her
ders
, for
a to
tal a
mou
nt o
f MN
T110
.5 m
illio
n (7
6% o
f the
targ
eted
spen
ding
) rea
chin
g 25
her
der h
ouse
hold
s.
Pric
e of
ani
mal
stoc
k va
ries a
cros
s reg
ions
and
resu
lted
high
er c
osts
than
es
mat
ed. H
erde
rs w
ere
an in
dole
nt w
here
bus
ines
s inc
uba
on
serv
ice
ongo
ing
unde
r pr
ogra
mm
e. F
inan
cial
gra
nt c
ould
eff e
c v
ely
cont
ribut
e to
mai
ntai
n he
rder
s in
long
term
agr
icul
ture
pro
vidi
ng g
ood
coor
dina
on
and
mon
itorin
g of
the
prog
ram
me.
Th
e ex
pect
a o
ns o
n th
e pr
ogra
mm
e ar
e hi
gh a
mon
g he
rder
s, h
owev
er fu
ndin
g ar
e lim
ited
and
elig
ibili
ty c
riter
ia h
ard
to m
eet w
hich
slow
dow
n th
e pr
ogra
mm
e’s
impl
emen
ta o
n. H
erde
rs a
lread
y be
nefi
ng
from
this
prog
ram
me
wer
e re
luct
ant t
o co
ntrib
ute
to th
e so
cial
insu
ranc
e sy
stem
. Fin
ally,
the
prog
ram
me
shou
ld g
ive
grea
ter a
en
on
to y
oung
her
ders
. 6.
Goo
d pr
ogre
ss u
nder
the
EPP-
Entr
epre
neur
ship
, but
ther
e is
too
smal
l fun
ding
for n
ew w
orkp
lace
(one
wor
kpla
ce-M
NT1
.0 m
illio
n) c
rea
on
rath
er th
an
com
pe
ve c
apac
ity v
alua
on
in a
mar
ket.
It is
risky
that
the
new
job
plac
e m
ay lo
se it
s com
pe
vene
ss a
er a
cer
tain
m
e be
caus
e of
a d
ram
a c
day
-on-
day
incr
ease
in th
e pr
ice
of g
oods
and
serv
ices
.7.
Ver
y w
eak
impl
emen
ta o
n of
the
EPP-
over
40.
Ci
zens
ove
r 40
year
s old
mos
tly lo
st th
eir c
onfi d
ence
due
to lo
ng u
nem
ploy
ed p
erio
d, e
mpl
oyer
’s te
nden
cy o
f age
di
scrim
ina
on
and
obso
lete
d w
orki
ng e
xper
ienc
es. A
lso, m
ost o
f the
m h
avin
g in
tere
st to
do
busin
ess b
y th
emse
lves
, not
to c
oope
rate
to sa
me
othe
rs.
116
5. E
mpl
oyer
s may
be
disc
oura
ged
by th
e diffi
culty
of o
btai
ning
the fi n
anci
al g
rant
from
th
e EP
P-Em
ploy
ers.
Em
ploy
ed in
divi
dual
s mus
t st
ay w
ith th
e sa
me
empl
oyer
for 1
2 m
onth
s; o
r m
ust p
rovi
de n
ew jo
b pl
ace
for j
obse
eker
who
w
as se
ekin
g fo
r ove
r 6 m
onth
s 6.
The
voc
a o
nal t
rain
ing
scho
lars
hip
leve
l is
low
er th
an th
e sc
hola
rshi
p fo
r Uni
vers
ity a
nd
colle
ge st
uden
ts. T
his m
ay n
ega
vel
y infl u
ence
ac
ve
labo
ur m
arke
t pro
gram
mes
.7.
Man
y sm
all a
nd m
ediu
m-s
ize b
usin
ess
hold
ers c
anno
t obt
ain
a lo
an fr
om th
e SM
E Fu
nds d
ue to
lack
of g
uara
ntee
col
late
ral.
8. G
ood
prog
ress
of t
he E
PP-D
isabi
lity.
Fee
dbac
k fr
om p
eopl
e di
sabi
li e
s sho
ws t
hey
pref
er to
star
t the
ir ow
n bu
sines
s rat
her t
han
be e
mpl
oyed
by
othe
r com
pani
es.
Tota
l fun
ds w
ere
inad
equa
te a
nd sh
ould
be
incr
ease
d.
9. G
ood
prog
ress
of t
he E
PP-P
WP.
Mos
t peo
ple
invo
lved
with
pub
lic w
orks
com
plai
n ab
out d
educ
on
for s
ocia
l ins
uran
ce c
ontr
ibu
on
from
thei
r Pub
lic W
ork
sala
ry.
If La
bour
div
ision
did
not
take
ded
uc o
n fr
om th
eir s
alar
ies t
hen
aim
ag so
cial
insu
ranc
e di
visio
n w
ould
impo
se a
pen
alty
. Lac
k of
info
rma
on
diss
emin
a o
n on
soci
al
insu
ranc
e pr
ogra
mm
e an
d po
or li
nkag
e be
twee
n so
cial
secu
rity
and
empl
oym
ent p
rogr
amm
es.
10. C
urre
ntly,
poo
r im
plem
enta
on
of th
e EP
P-Em
ploy
ers a
s of 2
3% c
ompa
red
with
pla
nned
in a
imag
leve
l due
to la
ck o
f inf
orm
a o
n on
this
prog
ram
me
amon
g th
e em
ploy
ers.
Som
e vo
ca o
nal t
rain
ing
cent
res f
alsif
y re
cord
s or d
uplic
ate
thei
r stu
dent
num
bers
to g
ain
extr
a fu
ndin
g fr
om th
e Sc
hola
rshi
p gr
ant f
or V
T.11
. Iss
ues o
f the
SM
E Fu
nds:
1) T
rans
pare
ncy.
Man
y pe
ople
say
they
can
not a
cces
s SM
E lo
ans b
ecau
se o
f unc
lear
pro
cedu
res a
nd g
over
nmen
t bur
eauc
racy
; 2)
Desp
ite LG
F’s l
egal
stat
us a
s a n
on-p
rofi t
lega
l en
ty, i
ts o
pera
ons
star
ted
only
rece
ntly
; 3) H
erde
rs in
the
rura
l are
a ev
en a
imag
ent
repr
eneu
rs s
ll h
ave
limite
d op
port
unity
to ta
ke o
ut a
loan
on
easy
term
s bec
ause
of t
he la
ck o
f inf
orm
a o
n.
Reco
mm
enda
ons
/ Ke
y re
com
men
da o
nsCo
s n
g sc
enar
ios
W21
. Int
rodu
ce S
I reg
istra
on
as a
con
di o
n to
ben
efi t
from
em
ploy
men
t pro
mo
on
prog
ram
mes
.W
A22:
Foc
us sh
ould
be
give
n on
enh
anci
ng c
ouns
ellin
g an
d tr
aini
ng se
rvic
es ra
ther
than
off e
ring
mor
e fi n
anci
al
gran
ts a
nd lo
ans.
Car
eful
ass
essm
ent o
f the
loan
and
fi na
ncia
l gra
nt p
rogr
amm
es im
pact
is n
eede
d, to
ens
ure
that
it d
oes n
ot p
ut a
ddi
onal
bur
den
on h
erde
rs’ h
ouse
hold
s.W
A23:
Aw
aren
ess a
nd in
form
a o
n ca
mpa
ign
abou
t the
new
EPP
s W
A24:
Dev
elop
you
ng h
erde
rs-t
arge
ted
EPP,
link
ing
be e
r with
voc
a o
nal t
rain
ing
and
soci
al in
sura
nce
regi
stra
on
(mos
t of b
enefi
cia
ries o
f the
eig
ht E
EPs a
re li
ving
in u
rban
are
as).
WA2
5: R
einf
orce
em
ploy
men
t pro
mo
on
serv
ices
, in
par
cul
ar ca
reer
(em
ploy
men
t) tr
aini
ng c
ouns
ellin
g,
voca
ona
l tra
inin
g an
d en
trep
rene
ursh
ip c
ouns
ellin
g, n
otab
ly fo
r you
th (t
oo m
uch
focu
s on
deliv
erin
g lo
ans
and fi n
anci
al g
rant
s).
WA2
6: D
evel
op E
PPs f
ocus
ed o
n m
ore
loca
l gov
ernm
ents
’ ini
a v
es o
r fi
ng
thei
r spe
cifi c
nee
ds.
WA2
7: C
reat
e ne
w sc
hem
e w
hich
cou
ld p
rom
ote
grow
th o
f the
targ
eted
gro
ups (
incu
ba o
n) in
via
thos
e EE
Ps
civi
l soc
iety
org
aniza
ons
can
car
ry o
ut (s
uch
as p
sych
olog
ical
cou
nsel
ling
serv
ice
for d
isabl
ed p
erso
ns).
WA2
8. S
uppo
rt a
nd e
ncou
rage
self-
empl
oym
ent a
nd e
ntre
pren
eurs
hips
for p
erso
ns w
ith d
isabl
ed.
WA2
9: D
evel
op a
com
preh
ensi
ve p
rogr
amm
e (v
oca
ona
l tra
inin
g, su
ppor
t to
entr
epre
neur
ship
, am
ong
othe
rs)
for r
eins
er o
n of
peo
ple
with
dis
abili
es d
ue to
wor
king
inju
ry a
nd o
ccup
a o
nal d
isea
sed,
thos
e re
ceiv
ing
the
disa
bilit
y pe
nsio
n fr
om so
cial
insu
ranc
e w
orki
ng in
jury
fund
WA3
0: In
crea
se c
urre
nt le
vel o
f VT
s p
end
to m
inim
um w
age
stan
dard
WA3
1: Im
prov
e cu
rren
t inf
orm
a o
n an
d m
onito
ring
syst
em o
f the
SM
E Fu
nd o
pera
on
WA3
2: P
rovi
de E
PPs a
nd su
ppor
t ser
vice
s at t
he S
oum
leve
lW
A33:
Loa
ns sh
ould
be
incl
uded
in in
tegr
ated
pac
kage
with
cou
nsel
ling
(to ru
n bu
sines
s but
also
alte
rna
ve
empl
oym
ent o
ppor
tuni
es)
, tra
inin
g an
d re
gist
ra o
n to
soci
al in
sura
nce
WA3
4: In
trod
uce
grea
ter fl
exi
bilit
y in
gua
rant
ees r
ules
so lo
an c
an b
e ac
cess
ed b
y m
ore
appl
ican
ts, e
spec
ially
am
ong
youn
g he
rder
s.
WA5
_1: S
ubsid
ize fu
lly so
cial
insu
ranc
e co
ntrib
u o
n fo
r ben
efi c
iarie
s of E
PP-P
repa
ring,
EPP
-ov
er 4
0, E
PP-D
isabi
lity,
EPP-
PWP,
EPP
-Her
ders
, EPP
-Ent
repr
eneu
rshi
p (s
ubsid
y co
vere
d by
Soc
ial
Insu
ranc
e Fu
nd, d
urin
g th
e pe
riod
of th
e EP
P) (s
ubsid
ies c
over
ed b
y HD
F).
WA5
_2: S
ubsid
ize fu
lly S
I con
trib
u o
n fo
r ben
efi c
iarie
s of E
PP-P
repa
ring,
EPP
-ove
r 40,
EPP
-di
sabi
lity,
EPP-
PWP;
subs
idize
d at
70%
vol
unta
ry so
cial
insu
ranc
e co
ntrib
u o
n (p
ensio
n an
d sh
ort-
term
ben
efi ts
) for
ben
efi c
iarie
s of E
PP-H
erde
rs, E
PP-E
ntre
pren
eurs
hip
(sub
sidy
cove
red
by S
ocia
l In
sura
nce
Fund
, dur
ing
the
perio
d of
the
EPP)
(sub
sidie
s cov
ered
by
HDF)
.W
A5_3
: Sub
sidize
fully
SI c
ontr
ibu
on
for b
enefi
cia
ries o
f EPP
-Pre
parin
g, E
PP-o
ver 4
0, E
PP-
disa
bilit
y, EP
P-PW
P; su
bsid
ized
at 5
0% v
olun
tary
soci
al in
sura
nce
cont
ribu
on
(pen
sion
and
shor
t-te
rm b
enefi
ts) f
or b
enefi
cia
ries o
f EPP
-Her
ders
, EPP
-Ent
repr
eneu
rshi
p (s
ubsid
y co
vere
d by
Soc
ial
Insu
ranc
e Fu
nd, d
urin
g th
e pe
riod
of th
e EP
P) (s
ubsid
ies c
over
ed b
y HD
F)W
A6-1
: Ent
repr
eneu
rshi
p su
ppor
t pro
gram
me
(ave
rage
loan
: MN
T5 m
illio
n, re
-pai
d ov
er te
n ye
ars)
, CB
ED tr
aini
ng p
rogr
amm
e (M
NT1
00,0
00 p
er h
ead
per s
essio
n), a
nd su
bsid
ized
SI c
ontr
ibu
on
(12%
) at 1
00%
dur
ing
thre
e ye
ars;
targ
et p
opul
a o
n: a
ge 1
5-24
, rur
al a
reas
.W
A6-2
: Voc
a o
nal t
rain
ing
prog
ram
me
(MN
T200
,000
per
wee
k; 1
2 w
eeks
of t
rain
ing)
, cos
t liv
ing
allo
wan
ce (M
NT4
,000
per
day
; 12
wee
ks) a
nd su
bsid
ized
soci
al in
sura
nce
cont
ribu
on
(12%
, 12
wee
ks);
targ
et p
opul
a o
n: a
ge 1
5-24
, rur
al a
reas
.W
A7: I
ntro
duce
a 2
mon
th u
p-sk
illin
g tr
aini
ng p
rogr
amm
e fo
r une
mpl
oyed
skill
ed w
orke
rs o
f for
mal
ec
onom
y (b
enefi
cia
ries o
f uni
vers
al in
sura
nce,
pro
gram
me fi n
ance
d by
soci
al in
sura
nce
fund
).Sc
. WA9
: Re-
skill
ing
trai
ning
for p
erso
ns o
f disa
bilit
y du
e to
wor
king
inju
ry a
nd o
ccup
a o
nal
dise
ases
(ben
efi c
iarie
s of d
isabi
lity
pens
ion
from
soci
al in
sura
nce
wor
king
inju
ry fu
nd)
117
1. In
volv
es th
e M
inist
ry o
f Lab
our,
empl
oym
ent s
ervi
ce ce
ntre
and
aim
ag, d
istric
t em
ploy
men
t div
ision
s. Le
gal f
ram
ewor
k: La
w o
n Em
ploy
men
t Pro
mo
on
(17
June
201
1) A
rt. 5
.2 (i
) occ
upa
ona
l an
d vo
ca o
nal o
rient
a o
n, c
ouns
ellin
g an
d in
form
a o
n; (i
i) jo
b m
edia
on;
(iii)
voc
a o
nal t
rain
ing
and
retr
aini
ng.
2. In
volv
es th
e M
inist
ry o
f Lab
our,
empl
oym
ent s
ervi
ce ce
ntre
and
aim
ag, d
istric
t em
ploy
men
t div
ision
s. Le
gal f
ram
ewor
k: La
w o
n Em
ploy
men
t Pro
mo
on
(17
June
201
1) A
rt. 5
.3 (i
) pro
mo
on
of
self-
empl
oyed
as w
ell a
s ci
zens
will
ing
to ru
n bu
sines
ses i
n fo
rms o
f par
tner
ship
or c
oope
ra v
es; (
ii) su
ppor
t to
empl
oyer
s; (i
ii) o
rgan
ize p
ublic
wor
ks; D
ecre
e N
o. 0
1, 2
012
of th
e N
a o
nal B
oard
of
Em
ploy
men
t pro
mo
on
3. In
volv
es th
e M
inist
ry o
f Lab
our,
empl
oym
ent s
ervi
ce c
entr
e an
d ai
mag
, dist
rict e
mpl
oym
ent d
ivisi
ons
3. In
volv
es M
OL,
MO
F 5.
Invo
lves
MSE
Dev
elop
men
t Fun
d, L
ocal
Em
ploy
men
t Div
ision
und
er th
e M
OL,
all
leve
ls of
Loa
n co
mm
issio
ns c
ompr
ised
by m
ul p
arts
; 6. I
nvol
ves
the
Empl
oym
ent
Divi
sion.
4. In
volv
es th
e M
inist
ry o
f Lab
our,
empl
oym
ent s
ervi
ce c
entr
e an
d ai
mag
, dist
rict e
mpl
oym
ent d
ivisi
ons.
Leg
al fr
amew
ork:
Law
on
Empl
oym
ent P
rom
o o
n (1
7 Ju
ne 2
011)
Art
. 5.3
(i) p
rom
o o
n of
sel
f-em
ploy
ed a
s w
ell a
s ci
zen
s w
illin
g to
run
busin
esse
s in
form
s of
par
tner
ship
or c
oope
ra v
es; (
ii) s
uppo
rt to
em
ploy
ers;
(iii)
org
anize
pub
lic w
orks
; Dec
ree
No.
01,
201
2 of
the
Na
ona
l Bo
ard
of E
mpl
oym
ent p
rom
o o
n5.
Invo
lves
the
Min
istry
of L
abou
r, em
ploy
men
t ser
vice
cen
tre
and
aim
ag, d
istric
t em
ploy
men
t div
ision
s. L
egal
fram
ewor
k: L
aw o
n Em
ploy
men
t Pro
mo
on
(17
June
201
1) A
rt. 5
.3 (i
) pro
mo
on
of s
elf-e
mpl
oyed
as
wel
l as
ci z
ens
will
ing
to ru
n bu
sines
ses
in fo
rms
of p
artn
ersh
ip o
r coo
pera
ves
; (ii)
sup
port
to e
mpl
oyer
s; (i
ii) p
ublic
wor
ks; D
ecre
e N
o. 0
1, 2
012
of th
e N
a o
nal B
oard
of
Empl
oym
ent p
rom
o o
n. 3
. MO
L, M
OF
4. M
SE D
evel
opm
ent F
und,
Loc
al E
mpl
oym
ent D
ivisi
on u
nder
the
MO
L, a
ll le
vels
of L
oan
com
miss
ions
com
prise
d by
mul
par
ts;
6. M
SE D
evel
opm
ent F
und,
Loc
al E
mpl
oym
ent D
ivisi
on u
nder
the
MO
L, a
ll le
vels
of L
oan
com
miss
ions
com
prise
d by
mul
par
ts.7
. Inv
olve
s th
e M
inist
ry o
f Lab
our,
empl
oym
ent s
ervi
ce c
entr
e an
d ai
mag
, dist
rict e
mpl
oym
ent d
ivisi
ons.
7.
MO
L, M
OF.
118
Sche
me
Ove
rvie
w o
f exi
s n
g pr
ovis
ions
An c
ipat
ed p
olic
y ch
ange
s/la
w re
form
sEx
is n
g co
vera
ge
Rede
mp
on
Pens
ion
Insu
ranc
e Co
ntrib
u o
n
(Law
on
Rede
mp
on
of S
ervi
ce y
ears
and
Pen
sion
Insu
ranc
e co
ntrib
u o
n (3
0 Se
ptem
ber 2
012)
; MPD
SP
Min
ister
ial O
rder
No.
A57
, 201
2)
Targ
et g
roup
: Ind
ivid
uals
unab
le to
wor
k du
e to
reas
ons b
eyon
d th
eir c
ontr
ol o
r who
wer
e un
able
to fi
nd a
job
betw
een
1990
an
d 19
95 (b
efor
e DB
sche
me)
; and
, ind
ivid
uals
who
hav
e m
issed
soci
al in
sura
nce
cont
ribu
on
paym
ent b
etw
een
1995
and
20
00 fo
r the
sam
e re
ason
s.
Ac v
ity: R
edee
m fo
r ser
vice
yea
rs b
etw
een
1990
and
199
5 an
d co
ntrib
u o
n pa
ymen
t bet
wee
n 19
95 a
nd 2
000.
Reg
istra
on
dead
line:
1 O
ct. 2
013
It w
as o
ne
me
mea
sure
whi
ch a
imed
to p
reve
n n
g fu
ture
inco
me
risks
of w
orki
ng a
ge p
opul
a o
n
496,
500
peop
le w
ere
regi
ster
ed, 6
0% o
r 296
,400
bo
ught
bac
k or
rede
emed
5–
11 y
ears
’ ser
vice
Man
dato
ry c
ontr
ibut
ory
old
age
pens
ion
(DB)
1
Law
on
Soci
al In
sura
nce
(31
May
199
4) A
r cl
es 4
.2,
4.3
and
4.7;
Law
on
Pens
ion
and
Bene
fi ts p
rovi
ded
by
the
Soci
al In
sura
nce
Fund
(7 Ju
ne 1
994)
Ar
cle
4
Scop
e: A
r cl
e 4.
2 (C
ontr
acte
d em
ploy
men
t and
pub
lic offi
cial
s), A
r cl
e 4.
3 (in
form
al se
ctor
and
une
mpl
oyed
wor
kers
, and
he
rder
s) b
orn
befo
re 1
Janu
ary
1960
; and
Ar
cle
4.7:
All
rein
deer
her
ders
livi
ng in
taig
a sh
all b
e in
sure
d by
the
Stat
e un
der t
he
pens
ion
and
bene
fi t (s
ome
say
allo
wan
ce) i
nsur
ance
sche
mes
. For
this
grou
p th
e co
ntrib
u o
n w
ill b
e fu
lly su
bsid
ized
and
they
w
ill c
over
ed u
nder
the
volu
ntar
y sc
hem
e (a
men
ded
on 3
0 Ja
nuar
y 20
15).
Cont
ribu
on:
Em
ploy
er 7
% a
nd E
mpl
oyee
7%
of p
ay-r
oll s
alar
y (b
etw
een
min
imum
wag
e an
d te
n m
es th
e m
inim
um w
age)
for
the
Pens
ion
fund
, pai
d to
the
Soci
al In
sura
nce
Fund
. Re
plac
emen
t rat
e: 4
5% o
f the
mon
thly
ave
rage
wag
e of
the
best
con
nui
ng fi
ve y
ears
’ sal
ary
and
incr
ease
d by
1.5
% o
f wag
es
for e
ach
year
add
i on
al to
20
year
s. F
or e
xam
ple,
60%
repl
acem
ent r
ate
a e
r 30
year
s. T
he m
inim
um g
uara
ntee
, if a
t lea
st 2
0 ye
ars o
f con
trib
u o
n is
75%
of m
inim
um w
age.
Q
ualif
ying
con
di o
ns: n
ot le
ss th
an 2
0 ye
ars o
f con
trib
u o
n fo
r ful
ly o
ld-a
ge p
ensio
n; m
inim
um: a
t lea
st fr
om 1
0 ye
ars t
o 19
ye
ars o
f con
trib
u o
n fo
r par
ally
OA
pens
ion.
Re
rem
ent a
ge: 5
5 fo
r wom
en (i
f the
y w
ish so
) and
50
for w
omen
raise
d 4
and
mor
e bo
rn o
r ado
pted
chi
ldre
n un
der 3
yea
rs
old
un l
the
age
of 6
; and
60
for m
en (r
egul
ar la
bour
con
di o
n). B
oth
men
and
wom
en a
lso a
pplic
able
to e
arly
re re
men
t (fr
om
45 to
55
year
s old
dep
endi
ng o
n th
eir l
abou
r con
di o
ns).
Fina
ncin
g: S
ocia
l Ins
uran
ce P
ensio
n Fu
nd;
Bene
fi ts:
Mon
thly
Ave
rage
pen
sion
bene
fi t w
as M
NT2
25,6
00 a
t the
end
of 2
013.
The
min
imum
soci
al in
sura
nce
old-
age
pens
ion
varie
d fr
om M
NT1
95,0
00 fo
r a p
ar a
l pen
sion
to M
NT2
30,0
00 fo
r a fu
ll pe
nsio
n fr
om 1
Feb
ruar
y 20
15.
Ac v
e co
ntrib
utor
s (Pr
e-19
60
coho
rts)
: 52,
100
or 5
.5%
of
tota
l ins
ured
Num
ber o
f Pe
nsio
ners
: 232
,100
in 2
013
Volu
ntar
y co
ntrib
utor
y ol
d ag
e pe
nsio
n (D
B)1
(Law
on
Pens
ion
and
Bene
fi ts p
rovi
ded
by th
e So
cial
in
sura
nce
(7 Ju
ne 1
994)
Art
. 4)
Scop
e: A
rt. 4
(3).
Cont
ribu
on:
10%
of r
efer
ence
sala
ry (b
etw
een
min
imum
wag
e an
d te
n m
es th
e m
inim
um w
age)
for P
ensio
n fu
nd, p
aid
to th
e So
cial
Insu
ranc
e Fu
nd.
Bene
fi ts,
Rep
lace
men
t rat
e, Q
ualif
ying
con
di o
ns a
nd R
e re
men
t age
: Sam
e as
abo
ve
Ac v
e co
ntrib
utor
s (Pr
e-19
60
coho
rt):
6,40
0 in
201
3
Man
dato
ry o
ld a
ge p
ensio
n (N
DC)1
(Law
on
Soci
al In
sura
nce
(31
May
199
4) A
r cl
es
4.2
and
4.3;
Law
on
Indi
vidu
al P
ensio
n In
sura
nce
Cont
ribu
on
Acco
unt (
1 Ju
ly 1
999)
)
Scop
e: A
r cl
e 4.
2 (C
ontr
acte
d em
ploy
men
t and
pub
lic offi
cial
s),
Ar c
le
4.3
(info
rmal
sect
or a
nd u
nem
ploy
ed w
orke
rs, a
nd h
erde
rs) b
orn
a e
r 1
Janu
ary
1960
.Co
ntrib
u o
n ra
te: S
ame
as D
B ol
d-ag
e pe
nsio
n sc
hem
e.
Re re
men
t age
: Sam
e as
DB
old
age
sche
me.
Year
s of s
ervi
ce: 1
5 ye
ars o
f ser
vice
and
con
trib
u o
nsRe
plac
emen
t rat
e: O
ld a
ge p
ensio
n is
calc
ulat
ed b
ased
on
year
s of
cont
ribu
ons
to th
e no
ona
l acc
ount
bal
ance
, acc
rued
no
ona
l ret
urns
fo
r eac
h ye
ar (a
vera
ge g
row
th in
the
last
thre
e ye
ars’
ave
rage
wag
es),
and
the
aver
age
life
expe
ctan
cy a
er r
e re
men
t.M
inim
um st
anda
rd: 2
0% o
f the
na
ona
l ave
rage
wag
e, p
lus a
n ad
di o
nal 0
.5%
of t
he a
vera
ge w
age
for e
ach
addi
ona
l ser
vice
yea
r be
yond
the
min
imum
of 1
5 ye
ars.
Mul
- e
r old
-age
inco
me
prot
ec o
n w
ill b
e in
trod
uced
by
Gove
rnm
ent b
y 20
16:
Pilla
r 0: U
nive
rsal
Old
age
pen
sion
(non
-con
trib
utor
y)
in p
lace
for c
urre
nt S
ocia
l wel
fare
Old
Age
and
Di
sabi
lity
Pens
ion
Pilla
r 1: M
anda
tory
Pen
sion
Insu
ranc
e Sc
hem
e (m
ajor
N
DC S
chem
e pl
us D
B sc
hem
e); a
nd
Pilla
r 2: V
olun
tary
Priv
ate
Pens
ion
Insu
ranc
e (A
ddi
onal
) Sch
eme
- Na
ona
l Age
ing
Stra
tegy
not
yet
ado
pted
(u
pgra
ded)
by
the
Gove
rnm
ent w
ill g
uara
ntee
: (i)
heal
th; (
ii) so
cial
secu
rity
(inco
me)
; (iii
) hou
sing;
(iv)
co
mm
unity
and
soci
al w
ork
for o
lder
per
sons
who
w
ish to
con
nue
wor
king
a e
r re
rem
ent
Ac v
e co
ntrib
utor
s (Po
st-
1960
coh
ort)
: 766
,815
in
2013
Firs
t pen
sione
r will
be
elig
ible
in 2
015
Volu
ntar
y ol
d ag
e pe
nsio
n (N
DC)1
Law
on
Soci
al In
sura
nce
(31
May
199
4) A
r cl
es
4.2
and
4.3;
Law
on
Indi
vidu
al P
ensio
n In
sura
nce
Cont
ribu
on
Acco
unt (
1 Ju
ly 1
999)
)
Ac v
e co
ntrib
utor
s (Po
st-
1960
coh
orts
): 14
7,10
0 in
20
13
Soci
al P
rote
c o
n Fl
oor A
sses
smen
t Mat
rix: G
uara
ntee
4- O
ld a
ge
119
Stat
e Pe
nsio
n Sc
hem
e: M
ilita
ry P
ensio
n2
(Law
on
Pens
ion
and
Bene
fi ts o
f Mili
tary
Ser
vice
Pe
rson
nel (
13 Ju
ne 1
994)
, Ar
cle
4.1)
Scop
e: A
rt. 4
.1: M
embe
rs o
f the
Def
ence
For
ces,
Pol
ice,
Bor
der S
ecur
ity, C
orre
c o
nal s
ervi
ce, I
ntel
ligen
ce, a
nd E
mer
genc
y Se
rvic
es a
re e
ligib
le fo
r mili
tary
old
age
pen
sion.
El
igib
ility
: The
syst
em re
quire
s 25
year
s of s
ervi
ce fo
r men
and
20
year
s of s
ervi
ce fo
r wom
en. T
here
is n
o le
gal r
e re
men
t age
. Re
plac
emen
t rat
e: T
he le
vel o
f ben
efi t
corr
espo
nd to
80%
of t
he m
onth
ly a
vera
ge w
age
incr
ease
d by
1.5
% o
f wag
es fo
r eac
h ye
ar a
ddi
onal
up
to 2
0–25
yea
rs.
Bene
fi ts:
The
min
imum
pen
sion
is al
igne
d w
ith th
e m
inim
um so
cial
insu
ranc
e ol
d ag
e pe
nsio
n th
at v
arie
d fr
om M
NT1
95,0
00 fo
r a
par
al p
ensio
n to
MN
T230
,000
for a
full
pens
ion
from
1 F
ebru
ary
2015
.. Fi
nanc
ing:
The
mili
tary
pen
sion
fund
is fi
nanc
ed b
y th
e go
vern
men
t bud
get.
Num
ber o
f Pen
sione
rs:
15,6
00 a
nd M
NT7
2.6
billi
on
spen
t in
2013
Soci
al w
elfa
re p
ensio
n (o
ld-a
ge a
nd d
isabi
lity)
3
(Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12),
Art.
12.1
.1)
Targ
et: A
ll m
en o
f age
60
and
abov
e, a
ll w
omen
of a
ge 5
5 an
d ab
ove;
sin
gle
mot
hers
age
45
or fa
ther
s age
50
head
ing
a fa
mily
of a
t lea
st fo
ur
child
ren
unde
r age
18.
.El
igib
ility
: The
per
son
mus
t hav
e ne
ver w
orke
d or
hav
e le
ss th
an 1
0 ye
ars o
f con
trib
u o
n to
the
man
dato
ry a
nd v
olun
tary
soci
al in
sura
nce
sche
mes
, and
ther
efor
e be
inel
igib
le fo
r a p
ensio
n un
der t
he S
ocia
l In
sura
nce
Pens
ion
Fund
. Be
nefi t
s: P
ensio
n in
crea
sed
from
MN
T115
,000
to M
NT1
26,5
00 o
n 1
Febr
uary
201
5.Fi
nanc
ing:
Soc
ial W
elfa
re F
und fi n
ance
d by
the
gove
rnm
ent b
udge
t
Acco
rdin
g to
MPD
SP’s
plan
the,
soci
al w
elfa
re
pens
ion
will
repl
aced
with
the
Pilla
r 0 u
nive
rsal
pe
nsio
n sy
stem
1,69
3 pe
ople
in 2
013
Reim
burs
emen
ts a
nd a
ssist
ance
serv
ices
for o
lder
pe
rson
s
(Law
on
Soci
al S
ecur
ity o
f Sen
ior C
i ze
ns (2
005)
; Art
. 5.
1.1–
5.1.
11)
Targ
et: S
enio
r ci
zens
ove
r 55–
60 y
ears
old
. Be
nefi t
: 11
type
s of r
eim
burs
emen
ts a
nd a
ssist
ance
serv
ices
.Bu
dget
: MN
T14.
3 bi
llion
spen
t in
2013
.
126,
000
peop
le in
201
3
Allo
wan
ce fo
r Mot
hers
with
man
y ch
ildre
n
Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12);
Art.
13.5
.9
Targ
et: M
othe
rs, w
ho w
as h
onou
red fi r
st a
nd se
cont
rank
Sta
te m
edal
of “
Mot
her’s
Glo
ry”.
Bene
fi ts:
1st
rank
MN
T200
,000
and
2nd
rank
MN
T100
,000
onc
e in
a y
ear.
Budg
et: M
NT2
9 bi
llion
spen
t in
2013
202,
500
peop
le in
201
3
Addi
ona
l allo
wan
ce fo
r sen
ior c
i ze
ns
(Law
on
Sup
plem
enta
ry A
llow
ance
for H
onou
red
Seni
or C
i ze
ns /H
SC/ (
2008
); Go
vern
men
t res
olu
on
No.
70,
201
2)
Targ
et: S
enio
r ci
zens
who
rew
arde
d w
ith a
med
al o
f Her
o of
Mon
golia
, Her
o of
Lab
our,
hold
er o
f Peo
ple’
s and
Hon
oure
d tl
es.
Bene
fi ts:
MN
T150
,000
–MN
T200
,000
per
mon
th.
Budg
et: M
NT4
.9 b
illio
n sp
ent i
n 20
13
4,80
0 pe
ople
in 2
013
Soci
al W
elfa
re S
ervi
ce: C
omm
unity
Bas
ed S
ervi
ce fo
r O
lder
per
sons
3
(Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12),
Ar c
les
17.1
.1, 1
8.1
and
18.2
.1)
Targ
et g
roup
: Old
er p
erso
ns
Serv
ices
: Cou
nsel
ling;
reha
bilit
a o
n; te
mpo
rary
acc
omm
oda
on
and
care
; day
car
e se
rvic
e; h
ome
base
d ca
re a
nd se
rvic
e;
Fina
ncin
g: L
ocal
gov
ernm
ent b
udge
t sin
ce 2
013.
Fund
ing
proc
ess:
Ser
vice
cos
ts a
re e
s m
ated
by
Soci
al w
elfa
re u
nit o
f aim
ag, d
istric
t and
cap
ital c
ity o
n th
e ba
sis o
f pro
posa
l iss
ued
by L
ivel
ihoo
d Su
ppor
t Cou
ncil
of re
spec
ve
soum
and
kho
roo
and
be su
bmi
ed to
the
Loca
l Gov
erno
r Offi
ce.
28,3
00 p
eopl
e in
201
4*
Soci
al W
elfa
re S
ervi
ce: I
ns tu
ona
l Car
e Se
rvic
e fo
r O
lder
per
sons
3
(Law
on
Soci
al W
elfa
re (1
9 Ja
nuar
y 20
12),
Art.
17.1
.2)
Targ
et: S
ingl
e ol
der p
erso
ns, i
den
fi ed
as u
nabl
e to
live
inde
pend
ently
, with
no
child
to su
ppor
t him
or h
er, o
r with
a c
hild
who
be
cam
e in
capa
ble
of c
are
taki
ng d
ue to
disa
bilit
y or
old
age
, and
are
una
ble
to b
enefi
t fr
om C
omm
unity
bas
ed w
elfa
re se
rvic
esFi
nanc
ing:
Loc
al g
over
nmen
t bud
get s
ince
201
3.
The
Gove
rnor
of t
he a
imag
, dist
rict a
nd c
apita
l city
mak
e a
deci
sion
to e
nrol
an
elde
r to
the
care
serv
ice.
120
Polic
y ga
psIm
plem
enta
on
Issu
es
1. C
over
age
unde
r the
vol
unta
ry sc
hem
e: V
ery
low
cov
erag
e, m
ostly
you
ng
peop
le, h
erde
rs a
nd se
lf-em
ploy
ed n
ot in
tere
sted
2.
Fun
ding
: The
DB
pens
ion
syst
em c
urre
ntly
ope
rate
s on
a PA
YG b
asis,
ho
wev
er th
e fu
nd is
cur
rent
ly in
defi
cit
and
proj
ec o
ns sh
ow th
at th
ese
defi c
its a
re li
kely
to g
row
in th
e fu
ture
, eve
n a
er c
onsid
erin
g th
e im
pact
of
the
1999
(Ind
ivid
ual P
ensio
n Ac
coun
t or N
DC) r
efor
m.
3. In
dexa
on:
The
leve
l of p
ensio
n be
nefi t
s adj
uste
d in
ad-
hoc
man
ner,
no
inde
xa o
n 4.
DB
vs. N
DC c
onfl i
ct: P
robl
ems i
n th
e pa
ram
eter
s of t
he D
B an
d N
DC
sche
mes
lead
ing
to a
nec
essa
ry p
ensio
n re
form
: (i)
wor
kers
bor
n po
st-1
960
will
hav
e lo
wer
re re
men
t ben
efi ts
than
wor
kers
bor
n pr
e 19
60; a
nd (i
i) ea
rly
re re
men
t und
er N
DC sc
hem
e th
ose
born
a e
r 196
0 is
also
will
be
low
er
than
the
bene
fi ts o
f tho
se w
ho w
ork
to th
e no
rmal
re re
men
t age
. 5.
Lev
el o
f ben
efi ts
: ina
dequ
ate
leve
l of p
ensio
n to
be
paid
und
er th
e in
divi
dual
acc
ount
syst
em, l
ow re
rem
ent a
ge th
at p
rovi
des l
ow le
vel o
f be
nefi t
s, in
par
cul
ar fo
r wom
en.
6. E
quity
: Ben
efi t
leve
l is h
ighe
r und
er m
anda
tory
Soc
ial i
nsur
ance
then
if th
e pe
rson
has
con
trib
uted
at m
inim
um w
age,
the
min
imum
pen
sion
the
pers
on
will
get
75%
of m
inim
um w
age
(min
imum
pen
sion
is 45
% o
f min
imum
wag
e).
Equa
lity
of tr
eatm
ent:
Une
qual
re re
men
t age
bet
wee
n m
en a
nd w
omen
. 7.
The
mili
tary
per
sonn
el c
an e
asily
get
100
% o
f the
ir po
st e
arni
ngs i
s too
ge
nero
us
1. C
ontr
ibu
on
rate
: The
leve
l of c
ontr
ibu
on
is aff
ord
able
and
min
imum
wag
e re
pres
enta
ve
of h
erde
rs in
com
e (m
inim
um w
age
equa
l to
at l
east
one
shee
p pe
r yea
r for
her
ders
), bu
t low
vol
unta
ry re
gist
ra o
n ow
ing
to th
e fo
llow
ing:
2.
Cov
erag
e: V
ery
low
cov
erag
e, m
ostly
you
ng p
eopl
e, h
erde
rs a
nd se
lf-em
ploy
ed w
orke
rs a
re n
ot in
tere
sted
, alth
ough
it in
clud
es
mat
erni
ty p
rote
c o
n.
3. E
vasi
on: T
he a
vera
ge w
age
repo
rted
by
the
Na
ona
l Sta
s c
al Offi
ce (N
SO) i
s sig
nifi c
antly
hig
her t
han
the
aver
age
wag
e de
clar
ed fo
r th
ose
payi
ng m
anda
tory
con
trib
u o
ns, s
how
ing
that
em
ploy
ers a
re e
vadi
ng th
eir c
ontr
ibu
on
resp
onsib
ili e
s.
4. A
cces
sibi
lity:
Her
ders
har
dly
visit
the
soum
cen
tre
once
per
mon
th d
ue to
rem
oten
ess,
ani
mal
hus
band
ry c
are
and
inco
me
shor
tage
s.
5. C
ontr
ibu
on
sche
dule
: The
sche
dule
shou
ld c
onsid
er ru
ral p
opul
a o
ns’ i
ncom
e cy
cle
and
life
styl
e fe
atur
es. H
erde
rs’ i
ncom
e st
ream
s de
pend
on
high
ly se
ason
al e
vent
s lik
e ca
shm
ere
and
milk
or l
ive
anim
al sa
les,
and
thei
r dem
and
for c
ash
is al
so h
ighl
y se
ason
al. H
erde
rs
only
hav
e op
port
unity
to h
ave
cash
onl
y tw
ice
a ye
ar w
hich
dur
ing
the
sprin
g fo
r cas
hmer
e an
d ea
rly D
ecem
ber f
or m
eat p
repa
ra o
n.
6. L
ack
of in
form
a o
n on
pro
cedu
res,
esp
ecia
lly a
mon
g th
e yo
ung
peop
le.
7. A
cces
sibi
lity:
Her
ders
har
dly
visit
onc
e a
mon
th th
e so
um c
entr
e. F
or th
ose
with
hig
her i
ncom
e, c
ontr
ibu
ng
at th
e m
inim
um w
age
will
pro
vide
them
onl
y a
min
imum
pen
sion.
Firs
t m
e ap
plic
a o
n fo
r pen
sion
at re
rem
ent a
ge a
t the
SI o
ffi ce
of t
he a
imag
cen
tre.
N
eed
to st
ream
line
the
proc
ess a
nd in
trod
uce
e-fi l
es. C
ost o
f bus
ck
et: a
roun
d M
NT1
0,00
0.8.
Mili
tary
pen
sion
: The
mili
tary
pen
sion
(ver
y ge
nero
us) i
s man
aged
by
the
Soci
al In
sura
nce
fund
, whi
ch c
reat
es c
onfu
sion
with
the
othe
r pen
sion
fund
s, n
eed
to se
para
te th
e pe
nsio
n fu
nds a
nd m
anag
emen
t 9.
Gov
erna
nce:
abs
ence
of p
erio
dica
l act
uaria
l rev
iew
s, lo
w a
dmin
istra
ve
capa
city
and
insuffi
cien
t inf
rast
ruct
ures
.10
. Qua
lity
of se
rvic
e: T
he re
imbu
rsem
ent l
ist o
f soc
ial a
ssist
ance
serv
ices
is n
eed
to u
pdat
e. S
ome
pros
thes
es a
nd o
rtho
paed
ics
faci
li e
s and
oth
er g
oods
and
serv
ices
are
not
incl
uded
in th
at li
st.
11. T
arge
ng
crite
ria: F
uel c
ompe
nsa
on
(coa
l and
fi re
woo
d) su
pply
pro
cedu
re is
insuffi
cien
t for
eld
erly
peo
ple
over
age
80.
Reco
mm
enda
ons
Impl
emen
ta o
n is
sues
E1: P
rovi
de a
n ad
equa
te p
ensi
on p
rote
c o
n to
her
ders
and
oth
er se
lf-em
ploy
ed in
divi
dual
s by
enco
urag
ing
cont
ribu
on
to th
e SI
sche
me.
The
co
ntrib
u o
ns sh
ould
be
subs
idize
d by
the
Gove
rnm
ent f
or th
ose
cont
ribu
ng
to th
e vo
lunt
ary
sche
me
as a
n in
cen
ve
to in
crea
se c
over
age.
E2
: Int
rodu
ce a
thre
e pi
llars
pen
sion
syst
em: P
illar
1: U
nive
rsal
min
imum
pen
sion
; Pill
ar 2
: Con
trib
utor
y SI
pen
sion
(vol
unta
ry a
nd m
anda
tory
); Pi
llar 3
: Com
plem
enta
ry in
divi
dual
savi
ng a
ccou
nts.
E3
: Rev
ise
the
soci
al in
sura
nce
pens
ion
para
met
ers t
o ad
just
re re
men
t age
bet
wee
n m
en a
nd w
omen
, DB
pens
ion
calc
ula
on,
and
the
inco
nsist
ency
bet
wee
n th
e be
nefi t
form
ula
of c
ontr
ibut
ed N
DC o
ld-a
ge p
ensi
on a
nd th
at o
f NDC
surv
ivor
s and
dis
abili
ty p
ensi
on.
E4: I
ntro
duce
new
sche
me
of su
pple
men
tal b
enefi
ts fo
r ins
ured
bor
n a
er 1
960
in c
ase
of e
arly
re re
men
t pro
visio
ns.
E5: I
ndex
(bot
h so
cial
insu
ranc
e an
d so
cial
wel
fare
) pen
sion
ben
efi t
amou
nt to
the
CPI e
very
yea
r, no
t ad
hoc
man
ner.
E6: I
ncre
ase
min
imum
pen
sion
leve
l but
at a
reas
onab
le le
vel s
o it
does
not
cre
ate
disin
cen
ves
to c
ontr
ibut
e to
the
soci
al in
sura
nce
sche
me
E7: O
ff er o
lder
peo
ple
an in
tegr
ated
pac
kage
of p
rote
c o
n, c
over
ing
heal
th, i
ncom
e se
curit
y, ho
usin
g an
d so
on.
E8: P
rovi
de a
com
preh
ensi
ve b
enefi
ts p
acka
ge fo
r poo
r eld
erly
(age
and
mea
ns ta
rget
ed):
hous
ing
bene
fi ts,
fuel
allo
wan
ce, i
ncre
ased
hea
lth
care
pac
kage
(see
reco
mm
enda
on
H17)
, and
the
min
imum
pen
sion
pro
vide
by
the
new
old
-age
pen
sion
syst
em.
E9: D
evel
op a
long
term
care
and
supp
ort s
yste
m fo
r eld
erly
(tha
t mig
ht h
ave
a po
si v
e im
pact
on
yout
h em
ploy
men
t cre
a o
n): n
ursi
ng h
ouse
s an
d pr
ogra
mm
es p
rom
o n
g th
e pa
r c
ipa
on
of o
lder
peo
ple
in so
cial
wor
k (e
.g. c
hild
care
) and
shor
t ter
m a
ssig
nmen
t (e.
g. d
octo
rs, h
erde
rs’
know
how
). E1
0: O
pen
op o
n to
pay
the
volu
ntar
y so
cial
insu
ranc
e co
ntrib
u o
n tw
ice
a ye
ar to
follo
w se
ason
ality
of h
erde
rs’ i
ncom
e (o
r to
allo
w m
ore
fl exi
bilit
y, p
ay o
nce
a ye
ar);
prov
ide
mor
e fl e
xibi
lity
in p
ayin
g ba
ck u
npai
d co
ntrib
u o
ns (a
pplie
s als
o to
Soc
ial I
nsur
ance
Pen
sion
Fun
d an
d SH
I co
ntrib
u o
ns. L
inke
d to
reco
mm
enda
on
H4)
E11:
Cre
ate
ince
n v
e m
echa
nism
for s
tabl
e so
cial
insu
ranc
e co
ntrib
u o
ns b
y he
rder
s and
self-
empl
oyed
. For
exa
mpl
e, if
her
der c
on n
uous
ly p
aid
for fi
ve
year
s of c
ontr
ibu
on,
then
sixt
h ye
ar c
ontr
ibu
on
may
be
li e
d.
E2_1
: Int
rodu
ce a
bas
ic p
ensio
n at
MN
T150
,000
(rur
al p
over
ty
line-
RPL)
for 6
0 (m
en)/
55 (w
omen
) not
cov
ered
by
the
soci
al
insu
ranc
e pe
nsio
n (v
olun
tary
and
man
dato
ry) a
nd su
bsid
ize
volu
ntar
y co
ntrib
u o
n at
50%
. E2
_2: I
ntro
duce
a b
asic
pen
sion
at M
NT1
50,0
00 (p
over
ty li
ne)
for a
ll th
ose
over
55
not c
over
ed b
y th
e so
cial
insu
ranc
e pe
nsio
n (v
olun
tary
and
man
dato
ry)a
nd su
bsid
ize v
olun
tary
con
trib
u o
n at
50%
. E2
_3: I
ntro
duce
a b
asic
pen
sion
at M
NT1
15,0
00 (c
urre
nt so
cial
w
elfa
re p
ensio
n) fo
r eve
ry p
erso
n ab
ove
age
60 (m
en)/
55
(wom
en) n
ot c
over
ed b
y th
e m
anda
tory
soci
al in
sura
nce
pens
ion
and
subs
idize
vol
unta
ry c
ontr
ibu
on
at 7
0%.
E2_4
: Int
rodu
ce a
bas
ic p
ensio
n at
MN
T115
,000
(cur
rent
soci
al
wel
fare
pen
sion)
for a
ll th
ose
over
age
55
and
subs
idize
vol
unta
ry
cont
ribu
on
at 7
0%.
E2_5
: Int
rodu
ce a
bas
ic p
ensio
n at
MN
T111
,600
(pov
erty
line
-20
% o
f min
imum
wag
e) fo
r all
thos
e ov
er a
ge 5
5 an
d su
bsid
ize
volu
ntar
y co
ntrib
u o
n at
80%
.
1. In
volv
es M
PDSP
, SIG
O, D
evel
opm
ent p
artn
ers (
ILO
, WB,
ADB
). 2.
Invo
lves
SIG
O, M
PDSP
, MO
F. 3.
Invo
lves
GO
SWS,
MPD
SP.
3. In
volv
es G
OSW
S, M
PDSP
.
121
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Contact informationUN Resident Coordinator’s Offi ceUnited Na ons Street-14Sukhbaatar DistrictUlaanbaatar-14201, MongoliaPhone: 976 11327585Fax: 976 11329996Website: www.un-mongolia.org
Many governments and the United Na ons (UN) have recognized that improving social protec on is an eff ec ve way for a country to reduce poverty and promote social and economic development, and have called for at least the establishment of social protec on fl oors.
A social protec on fl oor aims to provide a universal minimum level of social benefi ts and services, guaranteeing – at least – access to essen al health-care services; educa on, care and nutri on for children; and income security for those of working age, and older people. The social protec on fl oor framework also provides an opportunity for all UN agencies, development partners and interna onal fi nancial ins tu ons to work together to extend social protec on and improve the delivery of social benefi ts and services.
Many countries in the Asia Pacific region, including Afghanistan, Cambodia, India, Indonesia, Myanmar, Pakistan, Philippines, Solomon Islands, Thailand, Vanuatu and Viet Nam, have adopted the social protec on fl oor concept when designing their na onal social protec on policies and strategies.
Between June 2013 and January 2015, Mongolia conducted an assessment based na onal dialogue on social protec on, with the support of the United Na ons Country Team. This exercise aimed to set common priori es that can defi ne and help es mate the cost of a social protec on fl oor in Mongolia. Those results are shared in this report.
ILO Na onal Coordinator’s Offi ce United Na ons Street-14Sukhbaatar DistrictUlaanbaatar-14201, MongoliaPhone: 976 11320624Fax: 976 11320625Website: www.ilo.org
ILO/JapanMulti-bilateralProgramme
ISBN: 9789221298359